Proceedings of The 2nd International Conference on New Trends in Management, Business and Economics
Tax avoidance, corporate social responsibility and ownership structure
Ines Bouaziz Daoud and Nesrine Ennour
This study examines the relationship between corporate social responsibility (CSR) and tax avoidance. It also examines the impact of ownership structure on this relationship. Based on a sample of 300 European companies during the period 2014 – 2019, we use OLS regression models and find a negative association between corporate social responsibility and tax avoidance, which is consistent with agency theory concepts. In addition, we find that the variable family owned-firms moderate this relationship. These findings indicate that family firms are more socially responsible than non-family firms witch socio-emotional endowments and therefore are less tax avoidant.
keywords: Tax avoidance, corporate social responsibility (CSR), Cash effective tax rate, Ownership structure, Family firms.