Open AccessEffect of Corporate Social Responsibility on Tax Avoidance in China
Author(s) -
Tong Chen,
Maisarah Mohamed Saat
Publication year - 2021
Publication title -
journal of innovation and social science research
Language(s) - English
Resource type - Journals
ISSN - 2591-6890
DOI - 10.53469/jissr.2021.08(09).14
Subject(s) - corporate social responsibility , tax avoidance , business , payment , accounting , corporate tax , china , public economics , double taxation , economics , public relations , finance , political science , law
Corporate social responsibility (CSR) has aroused heated discussion in recent years. The public generally believe that the enterprises with good CSR performance will not be involved in aggressive tax avoidance issues. However, as several famous socially responsible technology companies were found to be involved in aggressive tax avoidance, the association between those two variables has been doubted. This paper analyzes the effect of CSR on tax avoidance with the evidence of Chinese listed companies from 2016 to 2020. The finding is that good CSR performance leads to an increase in effective tax rate. In other words, the higher the CSR report score, the higher tax payment and the lower tendency in tax avoidance.