What are the mitigating effects of CSR board committees on the extent of corporate tax avoidance?
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2024-07-09
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en
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This study researches the effect of the existence of a CSR board committee and the composition of this committee on corporate tax avoidance. Corporate culture theory and stakeholder theory are used to explain why firms with a CSR board committee installed are more aligned with the interests of their stakeholders and therefore would be less active in corporate tax avoidance. Furthermore, this study hypothesizes that gender diversity, size and independence off the CSR board committee all have a negative effect on corporate tax avoidance. The panel data consists of 14,970 observations with 3,080 unique firms from Europe and ranges from 2010 to 2019. The main analysis uses three different models with different measures for corporate tax avoidance. Furthermore, these models are control for the effect of leverage, firm size, return on assets, industry CSR sensitivity and country CSR sensitivity. The results showed that the independence of the CSR board committee is negatively related to corporate tax avoidance, other results were found insignificant. This study provides a new outlook on how the existence of a CSR board committee could influence corporate decision making on corporate tax avoidance. At last, this study provides its limitations and suggestions for future research.
Keywords: Corporate tax avoidance; CSR board committee; Corporate culture theory; Stakeholder theory
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Faculteit der Managementwetenschappen