Corporate Social Responsibility Performance and Corporate Tax Aggressiveness: The Moderating Role of Board Composition

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2024-07-08

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en

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This paper addresses the role corporate social responsibility (CSR) performance as a potential mechanism for affecting a firms’ likelihood of engaging in tax aggressiveness (TAG). The paper also contributes to the existing literature by addressing the moderating effect of board of directors’ (BoD) composition on the link between CSR performance and corporate TAG. Using an unbalanced panel of 1139 companies distributed across 21 countries and 9 industries from 2013 to 2022, the results support the finding that companies achieving high CSR performance are more likely to engage in aggressive tax practices. Additionally, the study identifies certain board composition characteristics that moderate the link between CSR performance and firms’ TAG. These findings provide valuable insights for tax authorities, managers and other stakeholders. The insights drawn from the result may help them to identify factors that influence firms’ motivations to participate in aggressive tax practices and mitigate or manage such behaviours.

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Faculteit der Managementwetenschappen