Corporate social responsibility and tax aggressiveness: an empirical analysis

Roman Lanis, Grant Richardson*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

153 Citations (Scopus)

Abstract

This study examines the association between corporate social responsibility (CSR) and corporate tax aggressiveness. Based on a sample of 408 publicly listed Australian corporations for the 2008/2009 financial year, our regression results show that the higher the level of CSR disclosure of a corporation, the lower is the level of corporate tax aggressiveness. We find a negative and statistically significant association between CSR disclosure and tax aggressiveness which holds across a number of different regression model specifications, thus more socially responsible corporations are likely to be less tax aggressive in nature. Finally, the regression results from our additional analysis indicate that the social investment commitment and corporate and CSR strategy (including the ethics and business conduct) of a corporation are important elements of CSR activities that have a negative impact on tax aggressiveness.

Original languageEnglish
Pages (from-to)86-108
Number of pages23
JournalJournal of Accounting and Public Policy
Volume31
Issue number1
DOIs
Publication statusPublished - 1 Jan 2012
Externally publishedYes

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