Tax Enforcement and Corporate Social Responsibility: Evidence from a Natural Experiment in China

References

• Acquaah, M. 2003. Corporate management, industry competition and the sustainability of firm abnormal profitability. Journal of Management and Governance 7 (1):57–85. doi:10.1023/A:1022489324208.
   Google Scholar
• Albuquerque, R., Y. Koskinen, and C. Zhang. 2019. Corporate social responsibility and firm risk: theory and empirical evidence. Management Science 65 (10):4451–69. doi:10.1287/mnsc.2018.3043.
   Web of Science ®Google Scholar
• Avi-Yonah, R. S. 2008. Corporate social responsibility and strategic tax behavior. Tax and Corporate Governance 3:183–98.
   Google Scholar
• Barnea, A., and A. Rubin. 2010. Corporate social responsibility as a conflict between shareholders. Journal of Business Ethics 97 (1):71–86. doi:10.1007/s10551-010-0496-z.
   Web of Science ®Google Scholar
• Baudot, L., J. A. Johnson, A. Roberts, and R. W. Roberts. 2020. Is corporate tax aggressiveness a reputation threat? Corporate accountability, corporate social responsibility, and corporate tax behavior. Journal of Business Ethics 163 (2):197–215. doi:10.1007/s10551-019-04227-3.
   Web of Science ®Google Scholar
• Carroll, A. B. 2000. Ethical challenges for business in the new millennium: Corporate social responsibility and models of management morality. Business Ethics Quarterly 10 (1):33–42. doi:10.2307/3857692.
   Google Scholar
• Chintrakarn, P., P. Jiraporn, J. Kim, and Y. S. Kim. 2016. The effect of corporate governance on corporate social responsibility. Asia-Pacific Journal of Financial Studies 45 (1):102–23. doi:10.1111/ajfs.12121.
   Web of Science ®Google Scholar
• Christensen, J., and R. Murphy. 2004. The social irresponsibility of corporate tax avoidance: Taking CSR to the bottom line. Development 47 (3):37–44. doi:10.1057/palgrave.development.1100066.
   Google Scholar
• Davis, A. K., D. A. Guenther, L. K. Krull, and B. M. Williams. 2015. Do socially responsible firms pay more taxes? The Accounting Review 91 (1):47–68. doi:10.2308/accr-51224.
   Web of Science ®Google Scholar
• Desai, M. A., and D. Dharmapala. 2006. Corporate tax avoidance and high-powered incentives. Journal of Financial Economics 79 (1):145–79. doi:10.1016/j.jfineco.2005.02.002.
   Web of Science ®Google Scholar
• Desai, M., A. Dyck, and L. Zingales. 2007. Theft and Taxes. Journal of Financial Economics 84 (3):591–623. doi:10.1016/j.jfineco.2006.05.005.
   Web of Science ®Google Scholar
• Dhaliwal, D. S., O. Z. Li, A. Tsang, and Y. G. Yang. 2011. Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review 86 (1):59–100. doi:10.2308/accr.00000005.
   Web of Science ®Google Scholar
• Dupire, M., and B. M. Zali. 2018. CSR strategies in response to competitive pressures. Journal of Business Ethics 148 (3):603–23. doi:10.1007/s10551-015-2981-x.
   Web of Science ®Google Scholar
• Gong, G., X. Huang, S. Wu, H. Tian, and W. Li. 2021. Punishment by securities regulators, corporate social responsibility and the cost of debt. Journal of Business Ethics 171 (2):337–56. doi:10.1007/s10551-020-04438-z.
   Web of Science ®Google Scholar
• Gupta, S., R. C. Laux, and D. P. Lynch. 2016. Do firms use tax reserves to meet analysts’ forecasts? Evidence from the pre- and post-FIN 48 periods. Contemporary Accounting Research 33 (3):1044–74. doi:10.1111/1911-3846.12180.
   Web of Science ®Google Scholar
• Hanlon, M., and J. Slemrod. 2009. What does tax aggressiveness signal? Evidence from stock price reactions to news about tax shelter involvement. Journal of Public Economics 93 (1–2):126–41. doi:10.1016/j.jpubeco.2008.09.004.
   Web of Science ®Google Scholar
• Hanlon, M., J. L. Hoopes, and N. Shroff. 2014. The effect of tax authority monitoring and enforcement on financial reporting quality. The Journal of the American Taxation Association 36 (2):137–70. doi:10.2308/atax-50820.
   Google Scholar
• Hemingway, C. A., and P. W. Maclagan. 2004. Managers’ personal values as drivers of corporate social responsibility. Journal of Business Ethics 50 (1):33–44. doi:10.1023/B:BUSI.0000020964.80208.c9.
   Web of Science ®Google Scholar
• Hoi, C. K., Q. Wu, and H. Zhang. 2013. Is corporate social responsibility (CSR) associated with tax avoidance? Evidence from irresponsible CSR activities. The Accounting Review 88 (6):2025–59. doi:10.2308/accr-50544.
   Web of Science ®Google Scholar
• Hoopes, J. L., D. Mescall, and J. A. Pittman. 2012. Do IRS audits deter corporate tax avoidance? The Accounting Review 87 (5):1603–39. doi:10.2308/accr-50187.
   Web of Science ®Google Scholar
• Huang, H., R. Li, and Y. Bai. 2019. Investor sentiment, market competition and trade credit supply. China Finance Review International 9 (2):284–306. doi:10.1108/CFRI-07-2018-0060.
   Web of Science ®Google Scholar
• Huseynov, F., and B. K. Klamm. 2012. Tax avoidance, tax management and corporate social responsibility. Journal of Corporate Finance 18 (4):804–27. doi:10.1016/j.jcorpfin.2012.06.005.
   Web of Science ®Google Scholar
• Jo, H., and M. A. Harjoto. 2012. The causal effect of corporate governance on corporate social responsibility. Journal of Business Ethics 106 (1):53–72. doi:10.1007/s10551-011-1052-1.
   Web of Science ®Google Scholar
• Jo, H., and H. Na. 2012. Does CSR reduce firm risk? Evidence from controversial industry sectors. Journal of Business Ethics 110 (4):441–56. doi:10.1007/s10551-012-1492-2.
   Web of Science ®Google Scholar
• Karuna, C. 2007. Industry product market competition and managerial incentives. Journal of Accounting and Economics 43 (2–3):275–97. doi:10.1016/j.jacceco.2007.02.004.
   Web of Science ®Google Scholar
• Khan, A., M. B. Muttakin, and J. Siddiqui. 2013. Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics 114 (2):207–23. doi:10.1007/s10551-012-1336-0.
   Web of Science ®Google Scholar
• Kong, D., Y. Shu, and Y. Wang. 2021. Corruption and corporate social responsibility: Evidence from a Quasi-natural experiment in China. Journal of Asian Economics 75:101317. doi:10.1016/j.asieco.2021.101317.
   Web of Science ®Google Scholar
• Laguir, I., R. Staglianò, and J. Elbaz. 2015. Does corporate social responsibility affect corporate tax aggressiveness? Journal of Cleaner Production 107:662–75. doi:10.1016/j.jclepro.2015.05.059.
   Web of Science ®Google Scholar
• Lanis, R., and G. Richardson. 2012. Corporate social responsibility and tax aggressiveness: An empirical analysis. Journal of Accounting and Public Policy 31 (1):86–108. doi:10.1016/j.jaccpubpol.2011.10.006.
   Web of Science ®Google Scholar
• Lanis, R., and G. Richardson. 2015. Is corporate social responsibility performance associated with tax avoidance? Journal of Business Ethics 127 (2):439–57. doi:10.1007/s10551-014-2052-8.
   Web of Science ®Google Scholar
• Lev, B., C. Petrovits, and S. Radhakrishnan. 2009. Is doing good good for you? How corporate charitable contributions enhance revenue growth. Strategic Management Journal 31:182–200.
   Web of Science ®Google Scholar
• Levinsohn, J., and A. Petrin. 2003. Estimating production functions using inputs to control for unobservables. Review of Economic Studies 70 (2):317–41. doi:10.1111/1467-937X.00246.
   Web of Science ®Google Scholar
• Li, W., J. A. Pittman, and Z. Wang. 2019. The determinants and consequences of tax audits: Some evidence from China. The Journal of the American Taxation Association 41 (1):91–122. doi:10.2308/atax-52136.
   Web of Science ®Google Scholar
• Li, J., X. Wang, and Y. Wu. 2020. Can government improve tax compliance by adopting advanced information technology? Evidence from the golden tax project III in China. Economic Modelling 93:384–97. doi:10.1016/j.econmod.2020.08.009.
   Web of Science ®Google Scholar
• Malik, S., B. Mihm, and F. Timme. 2018. An experimental analysis of tax avoidance policies. International Tax and Public Finance 25 (1):200–39. doi:10.1007/s10797-017-9448-1.
   Web of Science ®Google Scholar
• McShane, M. K., A. Nair, and E. Rustambekov. 2011. Does enterprise risk management increase firm value? Journal of Accounting, Auditing & Finance 26 (4):641–58. doi:10.1177/0148558X11409160.
   Google Scholar
• Mcwilliams, A., and D. Siegel. 2001. Corporate social responsibility: A theory of the firm perspective. The Academy of Management Review 26 (1):117–27. doi:10.5465/amr.2001.4011987.
   Web of Science ®Google Scholar
• Mertens, J. B. 2003. Measuring tax effort in central and Eastern Europe. Public Finance & Management 3 (4):530–63.
   Google Scholar
• Olley, G. S., and A. Pakes. 1996. The dynamics of productivity in the telecommunications equipment industry. Econometrica 64 (6):1263–97. doi:10.2307/2171831.
   Web of Science ®Google Scholar
• Preuss, L. 2010. Tax avoidance and corporate social responsibility: You can’t do both, or can you? Corporate Governance 10 (4):365–74. doi:10.1108/14720701011069605.
   Google Scholar
• Scherer, A. G., and G. Palazzo. 2004. Toward a political conception of corporate responsibility: Business and Society seen from a habermasian perspective. Academy of Management Review 32 (4):1096–120. doi:10.5465/amr.2007.26585837.
   Google Scholar
• Sikka, P. 2019. Smoke and mirrors: Corporate social responsibility and tax avoidance. Accounting Forum 34 (3–4):153–68. doi:10.1016/j.accfor.2010.05.002.
   Google Scholar
• Tolmie, C. R., K. Lehnert, and H. Zhao. 2020. Formal and informal institutional pressures on corporate social responsibility: A cross‐country analysis. Corporate Social Responsibility and Environmental Management 27 (2):786–802. doi:10.1002/csr.1844.
   Web of Science ®Google Scholar
• Wang, Z., and J. Sarkis. 2017. Corporate social responsibility governance, outcomes, and financial performance. Journal of Cleaner Production 162:1607–16. doi:10.1016/j.jclepro.2017.06.142.
   Web of Science ®Google Scholar
• Wang, L., Y. Dai, and D. Kong. 2021. Air pollution and employee treatment. Journal of Corporate Finance 70:102067. doi:10.1016/j.jcorpfin.2021.102067.
   Web of Science ®Google Scholar
• Wen, W., H. Cui, and Y. Ke. 2020. Directors with Foreign Experience and Corporate Tax Avoidance. Journal of Corporate Finance 62:101624. doi:10.1016/j.jcorpfin.2020.101624.
   Web of Science ®Google Scholar
• Xing, W., and J. Whalley. 2014. The golden tax project, value-added tax statistics, and the analysis of internal trade in china. China Economic Review 30:448–58. doi:10.1016/j.chieco.2014.05.005.
   Web of Science ®Google Scholar
• Yi, Y., Z. Zhang, and Y. Yan. 2021. Kindness is Rewarded! The Impact of Corporate Social Responsibility On Chinese Market Reactions to the COVID-19 Pandemic. Economics Letters 4:110066. doi:10.1016/j.econlet.2021.110066.
   Google Scholar
• Zhao, X., L. Fang, and K. Zhang. 2021. How foreign institutional shareholders’ religious beliefs affect corporate social performance? Journal of Business Ethics. doi:10.1007/s10551-020-04705-z.
   Web of Science ®Google Scholar