Does corporate social responsibility affect the fiscal aggressiveness of firms? Evidence of the Brazilian stock market
DOI:
https://doi.org/10.16930/2237-766220203019Keywords:
Tax aggressiveness, Corporate social responsibility, Effective Tax Rate.Abstract
This research analyzes the effects of the dimensions of corporate social responsibility (CSR) on the level of tax aggressiveness of publicly traded Brazilian companies. To this end, the performance in relation to companies' CSR was identified from the environmental, social and governance dimensions. After that, an aggregate variable was used that represents the general average of the companies in all dimensions. Tax aggressiveness was measured by calculating the effective tax rate (ETR). The analysis period comprised the years 2010 to 2018 and the analyzed models were operationalized from multiple regressions of panel data with estimation by feasible generalized least squares (FGLS). The results reveal a significant relationship between CSR and tax aggressiveness, indicating that adopting more or better CSR practices, regardless of their size, results in a lower level of tax aggressiveness for the companies analyzed in the sample. In general, the findings found reinforce the notion that CSR can affect organizational decisions.References
Adhikari, A., Derashid, C., & Zhang, H. (2006). Public policy, political connections, and effective tax rates: Longitudinal evidence from Malaysia. Journal of Accounting and Public Policy, 25(5), 574-595. DOI: https://doi.org/10.1016/j.jaccpubpol.2006.07.001
Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of management, 38(4), 932-968. DOI: https://doi.org/10.1177/0149206311436079
Baltagi, B. (2008). Econometric analysis of panel data. John Wiley & Sons Inc., New York.
Bansal, P. (2005). Evolving sustainably: A longitudinal study of corporate sustainable development. Strategic management journal, 26(3), 197-218. DOI: https://doi.org/10.1002/smj.441
Barclay, M. J., & Smith, C. W. (2005). The capital structure puzzle: The evidence revisited. Journal of Applied Corporate Finance, 17(1), 8-17. DOI: https://doi.org/10.1111/j.1745-6622.2005.012_2.x
Berle, A., & Means, G. (1932). The Modern Corporation and Private Property. New York: Macmillan, 2(3), 45-53.
Blaufus, K., Möhlmann, A., & Schwäbe, A. N. (2019). Stock price reactions to news about corporate tax avoidance and evasion. Journal of Economic Psychology, 72, 278-292. DOI: https://doi.org/10.1016/j.joep.2019.04.007
Cai, Y., Jo, H., & Pan, C. (2011). Vice or virtue? The impact of corporate social responsibility on executive compensation. Journal of Business Ethics, 104(2), 159-173. DOI: https://doi.org/10.1007/s10551-011-0909-7
Cai, Y., Jo, H., & Pan, C. (2012). Doing well while doing bad? CSR in controversial industry sectors. Journal of Business Ethics, 108(4), 467-480. DOI: https://doi.org/10.1007/s10551-011-1103-7
Calijuri, M. S. S. (2009). Avaliação da gestão tributária a partir de uma perspectiva multidisciplinar. Tese de Doutorado em Contabilidade e Controladoria, Universidade de São Paulo, São Paulo, SP, Brasil.
Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: methods and applications. Cambridge university press. DOI: https://doi.org/10.1017/CBO9780511811241
Carroll, A. B. (2008). A history of corporate social responsibility: Concepts and practices. The Oxford handbook of corporate social responsibility, 19-46. DOI: https://doi.org/10.1093/oxfordhb/9780199211593.003.0002
Carroll, A. B. (2015). Corporate social responsibility: The centerpiece of competing and complementary frameworks. Organizational dynamics, 44(2), 87-96. DOI: https://doi.org/10.1016/j.orgdyn.2015.02.002
Chen, S., Chen, X., Cheng, Q., & Shevlin, T. (2010). Are family firms more tax aggressive than non?financial firms? Journal of Financial Economics, 95(1), 41-61. DOI: https://doi.org/10.1016/j.jfineco.2009.02.003
Cho, C. H., Roberts, R. W., & Patten, D. M. (2010). The language of US corporate environmental disclosure. Accounting, Organizations and Society, 35(4), 431-443. DOI: https://doi.org/10.1016/j.aos.2009.10.002
Chiachio, V. F. D. O., & Martinez, A. L. (2019). Effects of the Fleuriet model and liquidity ratios on tax aggressiveness. Revista de Administração Contemporânea, 23(2), 160-181. DOI: https://doi.org/10.1590/1982-7849rac2019180234
Chollet, P., & Sandwidi, B. W. (2018). CSR engagement and financial risk: A virtuous circle? International evidence. Global Finance Journal, 38, 65-81 DOI: https://doi.org/10.1016/j.gfj.2018.03.004
Cruz, C. V. O. A., & de Lima, G. A. S. F. (2010). Reputação corporativa e nível de disclosure das empresas de capital aberto no Brasil. Revista Universo Contábil, 6(1), 85-101. DOI: https://doi.org/10.4270/ruc.2010105
Davidson, R., & MacKinnon, J. G. (1993). Estimation and inference in econometrics. OUP Catalogue.
Deegan, C. R. A. I. G. (2002). Introduction: the legitimising effect of social and environmental disclosures. Accounting, Auditing & Accountability Journal, 15(3), 282-311. DOI: https://doi.org/10.1108/09513570210435852
Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2008). Long-run corporate tax avoidance. The Accounting Review, 83(1), 61-82. DOI: https://doi.org/10.2308/accr.2008.83.1.61
Elali, A. (2009). Um exame da desigualdade da tributação em faces dos princípios da ordem econômica. In Princípios e Limites da Tributação (Vol. 2, pp. 223-249). Quartir Latin.
França, C. J. de, Moraes, A. M. L. de M. de, & Martinez, A. L. (2015). Tributação Implícita e Clientelas, Arbitragem, Restrições e Fricções. Revista de Administração e Contabilidade da FAT, 7(1), 5-18.
França, R. D. D. (2018). Ensaios sobre tax avoidance, reputação corporativa e governança no Brasil.
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Massachusetts: Pitman Publishing, Marshfield.
Friedman, M. (1962). Capitalism and Freedom. Chicago: University of Chicago Press.
Friedman, M. (1972). Milton Friedman responds. Business and Society Review, 1, 5-16.
Gaertner, F. B. (2014). CEO After?Tax compensation incentives and corporate tax avoidance. Contemporary Accounting Research, 31(4), 1077-1102. DOI: https://doi.org/10.1111/1911-3846.12058
Garcia, A. S., Silva, W. M., & Orsato, R. J. (2017). Sensitive industries produce better ESG performance: Evidence from emerging markets. Journal of cleaner production, 150, 135-147. DOI: https://doi.org/10.1016/j.jclepro.2017.02.180
Goh, B.W., Lee, J., Lim, C. Y., & Shevlin, T. J., (2016). The Efect of Corporate Tax Avoidance on the Cost of Equity. The Accounting Review, 91(6), 1647-1670. DOI: https://doi.org/10.2308/accr-51432
Gomes, A. P. M. (2012). A influência das características da governança corporativa na gestão tributária das empresas brasileiras. Dissertação em Controladoria e Contabilidade, Universidade Federal de Minas Gerais, Belo Horizonte, MG, Brasil.
Gul, F. A., Khedmati, M., & Shams, S. M. (2018). Managerial acquisitiveness and corporate tax avoidance. Pacific-Basin Finance Journal, 101056. DOI: https://doi.org/10.1016/j.pacfin.2018.08.010
Greene, W. H. (2003). Econometric Analysis (5a ed.). Upper Saddle River, NJ: Prentice Hall.
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50(2-3), 127-178. DOI: https://doi.org/10.1016/j.jacceco.2010.09.002
Hoi, C. K., Wu, Q., & Zhang, H. (2013). Is corporate social responsibility (CSR) associated with tax avoidance? Evidence from irresponsible CSR activities. The Accounting Review, 88(6), 2025-2059. DOI: https://doi.org/10.2308/accr-50544
Huang, W., Ying, T., & Shen, Y. (2018). Executive cash compensation and tax aggressiveness of Chinese firms. Review of Quantitative Finance and Accounting, 51(4), 1151-1180. DOI: https://doi.org/10.1007/s11156-018-0700-2
Huseynov, F., & Klamm, B. K. (2012). Tax avoidance, tax management and corporate social responsibility. Journal of Corporate Finance, 18(4), 804-827. DOI: https://doi.org/10.1016/j.jcorpfin.2012.06.005
Jamali, D., & Karam, C. (2018). Corporate social responsibility in developing countries as an emerging field of study. International Journal of Management Reviews, 20(1), 32-61. DOI: https://doi.org/10.1111/ijmr.12112
Jo, H., & Harjoto, M. A. (2011). Corporate governance and firm value: The impact of corporate social responsibility. Journal of business ethics, 103(3), 351-383. DOI: https://doi.org/10.1007/s10551-011-0869-y
Kovács, G. (2008). Corporate environmental responsibility in the supply chain. Journal of Cleaner Production, 16(15), 1571-1578. DOI: https://doi.org/10.1016/j.jclepro.2008.04.013
Laguir, I., Staglianò, R., & Elbaz, J. (2015). Does corporate social responsibility affect corporate tax aggressiveness? Journal of cleaner production, 107, 662-675. DOI: https://doi.org/10.1016/j.jclepro.2015.05.059
Lakatos, E. M., & Marconi, M. A. (2007). Fundamentos de metodologia científica (5a ed.). São Paulo, SP: Atlas.
Lanis, R., & Richardson, G. (2011). The effect of board of director composition on corporate tax aggressiveness. Journal of Accounting and Public Policy, 30(1), 50-70. DOI: https://doi.org/10.1016/j.jaccpubpol.2010.09.003
Lanis, R., & Richardson, G. (2012). Corporate social responsibility and tax aggressiveness: An empirical analysis. Journal of Accounting and Public Policy, 31(1), 86-108. DOI: https://doi.org/10.1016/j.jaccpubpol.2011.10.006
Lim, Y. (2012). Tax avoidance and underleverage puzzle: Korean evidence. Review of Quantitative Finance and Accounting, 39(3), 333-360. DOI: https://doi.org/10.1007/s11156-011-0258-8
López?González, E., Martínez?Ferrero, J., & García?Meca, E. (2019). Does corporate social responsibility affect tax avoidance: Evidence from family firms. Corporate Social Responsibility and Environmental Management, 26(4), 819-831. DOI: https://doi.org/10.1002/csr.1723
Machado, M. R., Machado, M. A. V., & Corrar, L. J. (2009). Desempenho do índice de sustentabilidade empresarial (ISE) da Bolsa de Valores de São Paulo. Revista Universo Contábil, 5(2), 24-38. DOI: https://doi.org/10.4270/ruc.2009211
Marques, L. D. (2000). Modelos dinâmicos com dados em painel: revisão de literatura.
Centro de estudos Macroeconómicos e Previsão, Faculdade de Economia do Porto.
Martinez, A. L. (2017). Agressividade tributária: um survey da literatura. Revista de Educação e Pesquisa em Contabilidade, 11, 106-124. DOI: https://doi.org/10.17524/repec.v11i0.1724
Martinez, A. L., & Ramalho, V. P. (2017). Agressividade tributária e sustentabilidade empresarial no Brasil. Revista Catarinense da Ciência Contábil, 16(49). DOI: https://doi.org/10.16930/rccc.v16n49.2366
Martinez, A. L., & Silva, R. (2020). Empresas Brasileiras de Capital Aberto que Pagam Menos Impostos Criam Mais Empregos? Revista Catarinense da Ciência Contábil, 19, 1-15.
Martins, G. A., & Theóphilo, C. R. (2009). Metodologia da investigação científica para ciências sociais aplicadas. São Paulo, SP: Atlas.
Mills, L., Erickson, M. M., & Maydew, E. L. (1998). Investments in tax planning. The Journal of the American Taxation Association, 20(1), 1. DOI: https://doi.org/10.2308/jata.2001.23.1.1
Oikonomou, I., Brooks, C., & Pavelin, S. (2012). The impact of corporate social performance on financial risk and utility: A longitudinal analysis. Financial Management, 41(2), 483-515. DOI: https://doi.org/10.1111/j.1755-053X.2012.01190.x
Rego, S. O., & Wilson, R. (2012). Equity risk incentives and corporate tax aggressiveness. Journal of Accounting Research, 50(3), 775-810. DOI: https://doi.org/10.1111/j.1475-679X.2012.00438.x
Richardson, G., & Lanis, R., 2007. Determinants of the variability in corporate effective tax rates and tax reform: evidence from Australia. Journal of Accounting and Public Policy, 26(6), 689-704. DOI: https://doi.org/10.1016/j.jaccpubpol.2007.10.003
Rodrigo, P., Duran, I. J., & Arenas, D. (2016). Does it really pay to be good, everywhere? A first step to understand the corporate social and financial performance link in Latin American controversial industries. Business Ethics: A European Review, 25(3), 286-309. DOI: https://doi.org/10.1111/beer.12119
Santana, S. L. L. (2014). Planejamento tributário e valor da firma no mercado de capitais brasileiro. Dissertação de Mestrado, Universidade de São Paulo, São Paulo, Brasil.
Sari, P., & Prihandini, W. (2019). Corporate Social Responsibility and Tax Aggressiveness in Perspective Legitimacy Theory. International Journal of Economics, Business and Accounting Research (IJEBAR), 3(04). DOI: https://doi.org/10.29040/ijebar.v3i04.726
Scholes, M. S., Wilson, G. P., & Wolfson, M. A. (1992). Firms’ responses to anticipated reductions in tax rates: The Tax Reform Act of 1986 (No. w4171). National Bureau of Economic Research. DOI: https://doi.org/10.3386/w4171
Silva, J. M. D. (2017). A influência do ciclo de vida organizacional sobre o nível de planejamento tributário. Tese de Doutorado, Universidade de São Paulo, São Paulo, Brasil.
Silva, R., & Martinez, A. L. (2017). Restrição financeira e agressividade fiscal nas empresas brasileiras de capital aberto. Anais do Congresso Anpcont, Belo Horizonte, MG, Brasil, 11. DOI: https://doi.org/10.14392/ASAA.2018110305
Stickney, C. P., & McGee, V. E. (1982). Effective corporate tax rates the effect of size, capital intensity, leverage, and other factors. Journal of accounting and public policy, 1(2), 125-152. DOI: https://doi.org/10.1016/S0278-4254(82)80004-5
Teixeira, D. P. (2018). A influência das restrições financeiras na gestão tributária das empresas brasileiras. Dissertação em Controladoria e Contabilidade, Universidade Federal de Minas Gerais, Belo Horizonte, MG, Brasil.
Vello, A. P. C., & Martinez, A. L. (2014). Planejamento tributário eficiente: uma análise de sua relação com o risco de mercado. Revista Contemporânea de Contabilidade, 11(23), 117-140. DOI: https://doi.org/10.5007/2175-8069.2014v11n23p117
Wahab, N. S. A., & Holland, K. (2012). Tax planning, corporate governance and equity value. The British Accounting Review, 44(2), 111-124. DOI: https://doi.org/10.1016/j.bar.2012.03.005
Whait, R. B., Christ, K. L., Ortas, E., & Burritt, R. L. (2018). What do we know about tax aggressiveness and corporate social responsibility? An integrative review. Journal of cleaner production, 204, 542-552. DOI: https://doi.org/10.1016/j.jclepro.2018.08.334
Published
How to Cite
Issue
Section
License
The copyright for articles published in this journal belongs to the author (s), with first publication rights assigned to Revista Catarinense da Ciência Contábil. Due to appearing in this publicly accessible journal, articles are free to use, with mandatory recognition of the original authorship and initial publication in this magazine and for educational and non-commercial applications. The magazine chose to use published works for non-commercial purposes, including the right to submit or work for publicly accessible databases. The content of published articles is the sole and exclusive responsibility of the authors. - The author (s) authorize (s) a publication of the article in the journal; - The author (s) guarantee (s) that a contribution is original and unpublished and that it is not being evaluated in another magazine (s); - A magazine is not responsible for the opinions, ideas and concepts emitted in the texts, for the full responsibility of the author (s); - It is reserved to the editors or the right to make textual adjustments and to adjust the article to the publication rules.
This work is licensed under a Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional.
