Does corporate social responsibility affect corporate tax aggressiveness?

Issam Laguir (), Raffaele Staglianò and Jamal Elbaz
Additional contact information
Issam Laguir: MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier
Raffaele Staglianò: MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier
Jamal Elbaz: Ecole Supérieure de Technologie d'Agadir - Université Ibn Zohr = Ibn Zohr University [Agadir]

Post-Print from HAL

Abstract: Recent years have seen a considerable increase in the literature concerning the separate areas of corporate social responsibility and corporate tax aggressiveness. However, comparatively little scholarly attention has been paid to the link between the two. This paper examines how the different activities of corporate social responsibility affect corporate tax aggressiveness. A structural model was tested using partial least squares regression to determine whether the relationships between corporate social responsibility dimensions and tax aggressiveness are positive or negative. Based on a sample of French publicly listed firms, the results indicate that a firm's tax aggressiveness depends on the nature of its corporate social responsibility activities. Notably, the study demonstrates that greater the activity in the social dimension of corporate social responsibility, the lower the level of corporate tax aggressiveness will be, whereas high activity in the economic dimension is associated with a high level of tax aggressiveness. These results extend the prior literature concerning the relationship between corporate social responsibility and tax aggressiveness and suggest that the nature of the relationship, whether negative or positive, tends to differ across the corporate social responsibility dimensions. Overall, the study provides unique insight into the association between CSR activities and corporate tax aggressiveness. Indeed, the paper strongly supports the current literature and argues that the dimensions of corporate social responsibility should not be aggregated into a single measure because interesting and explanatory information is lost when such a method is used, especially with regard to an issue like corporate tax aggressiveness.

Keywords: Corporate social responsibility; Tax aggressiveness; Shareholders; Stakeholders; PLS-SEM (search for similar items in EconPapers)
Date: 2015-11-16
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Published in Journal of Cleaner Production, 2015, 107, pp.662-675. ⟨10.1016/j.jclepro.2015.05.059⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02053812

DOI: 10.1016/j.jclepro.2015.05.059

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().