The Impact of CSR Performance on Corporate Tax Avoidance: Evidence from a Cross-Country Tax Avoidance: Evidence from a Cross-Country Panel Study with Institutional, Economic and Cultural Moderators
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2025-07-10
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en
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Using data on global listed firms from 2016 to 2023, this paper examines how corporate social responsibility (ESG scores) relates to tax avoidance, measured by effective tax rates, and whether national-level legal, economic, and cultural factors moderate this link. Multivariate regressions show that firms with higher ESG scores tend to report lower book tax rates, suggesting some companies pair a sustainable image with active tax planning. Except for power distance, most contextual variables: rule-of-law strength, legal origin, GDP per capita, and uncertainty avoidance, do not significantly change this pattern. Robustness checks using cash tax rates, dropping U.S. firms, and splitting the sample period confirm the main findings.
Overall, CSR alone does not guarantee lower tax avoidance; its impact depends on cultural and institutional settings. The study offers cross-country evidence on the mixed tension between “doing good” and “saving taxes,” and reminds policymakers to consider external environments when linking CSR assessments to tax policies.
Keywords: CSR, ESG, Tax avoidance
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Faculteit der Managementwetenschappen