Corporate Social Responsibility, Tax Avoidance, and Earnings Performance

• Main Authors: WU, SHENG-WEN, 吳勝文
• Other Authors: KUO, JENN-SHYONG
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/27529011231727251859

碩士 === 國立臺北大學 === 會計學系 === 105 === This paper examines the correlation between corporate social responsibility (CSR) and tax avoidance, and the moderate effect of pre-tax (current and future) earnings performance. The source of this paper is based on the financial information and corporate social responsibility data in the Taiwan Economic Journal database. Furthermore, this paper refers to the concept of KLD to measure CSR performance database, and establishes six aspects of community, employee relationship, environment, product, diversity and human rights and nine indicators; Also, based on the indicators on the corporate postive or negative impact, they are divided into the strengths (Strengths) and concerns (Concerns) indicators, respectively, points 1 or -1 points. In this paper, three indicators are established to measure the degree of CSR: First, the nine indicators are summed up as a comprehensive index (CSR). Second, respective summation of the indicator of strengths and concerns become the Strengths and Concerns. Third, when the CSR is greater or less than zero, the virtual variable PosCsr (NegCsr) is set to 1 for the positive CSR or negative CSR, and other cases are set to zero. This paper uses the effective tax rate and tax difference to measure the degree of corporate tax avoidance, and the regression analysis of corporate social responsibility index and control variable with corporate tax avoidance. The result shows that: First, under the circumstance of no control of the corporate earnings performance, three indicators of corporate social responsibility (CSR, Strengths and Concerns, PosCsr and NegCsr) are no significant correlation to tax avoidance respectively. Second, regarded the current earnings performance as a moderate variable, this study shows that the higher Strengths, the higher the corporate tax avoidance, but the lower the corporate tax avoidance in high profit; the PosCsr in high profit is decreased the degree of tax avoidance. Third, regarded performance as a moderate variable, this study shows that the higher Concerns and NegCsr ; the higher degree of corporate tax avoidance, but the lower the corporate tax avoidance in high profit; the Strenghs in high profit is decreased the degree of tax avoidance. Fourth, in the regression result of the profit performance grouping, only in the low future profit group, this study shows that the higher Concerns and Strengths, the higher degree of the corporate tax avoidance. This view is consistent with the third point. Based on the empirical results of this study, the relationship between corporate social responsibility activities and their tax avoidance is related, and the performance of corporate earnings is reduced by the adjustment effect, only weak support proposition.