The impact of tax avoidance and environmental performance on tax disclosure in CSR reports

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Referenz

Hardeck, I., Inger, K. K., Moore, R. D., & Schneider, J. (2024). The impact of tax avoidance and environmental performance on tax disclosure in CSR reports. Journal of the American Taxation Association, 46(4), 83-111. (ABDC_2022: A; ABS_2021: 3; VHB_3: B)

Publikationsart

Beitrag in wissenschaftlicher Fachzeitschrift

Abstract

This study explores how and why firms voluntarily discuss taxes in corporate social responsibility (CSR) reports. Using a textual analysis approach, we analyze 2,984 CSR reports from 22 countries to identify tax disclosures, including instances of firms explicitly relating taxes to CSR (“socially responsible tax disclosures”). We find that on average firms provide limited tax information and tend to use disclosures portraying tax payments as beneficial for society rather than presenting strategies to ensure socially responsible tax behavior. When examining possible influences on firms’ disclosure decisions, we find robust evidence of a negative association between socially responsible tax disclosures and environmental performance, consistent with firms using the disclosures to build or repair reputational capital. We also find some evidence of a positive association between socially responsible tax disclosures and tax avoidance, particularly among U.S. firms. Our results should be useful for standard setters and readers of CSR reports.

Mitarbeiter

Einrichtungen

  • Liechtenstein Business School

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