Title

Corporate social responsibility, institutional environments, and tax avoidance : evidence from a subnational comparison in China

Document Type

Journal article

Source Publication

International Journal of Accounting

Publication Date

12-1-2017

Volume

52

Issue

4

First Page

303

Last Page

318

Publisher

Elsevier Ltd

Keywords

Business ethics and social responsibility, Institutions, Tax avoidance, Transition economies

Abstract

We examine the association between mandatory corporate social responsibility (CSR) disclosure and economic contribution (tax payments) in China, where we expect this association to be affected by a region's institutional attributes. Exploiting a dataset that shows cross-regional variations in institutions, we find that in regions with lower institutional quality, firms claiming to be socially responsible actually avoid taxes, whereas CSR disclosure in other regions is more aligned with the social responsibility aspect of tax compliance. Our study contributes to the literature by demonstrating that in the absence of proper institutions, CSR disclosure is likely to remain a form of window dressing.

DOI

10.1016/j.intacc.2017.11.002

Print ISSN

00207063

E-ISSN

22133933

Funding Information

Financial support from Lingnan University (Funding Ref. DR13A1). {DR13A1}

Publisher Statement

Copyright © 2017 University of Illinois. Access to external full text or publisher's version may require subscription.

Additional Information

This paper won the 36th International Business Research Conference Best Paper Award.

Full-text Version

Publisher’s Version

Recommended Citation

Lin, K. Z., Cheng, S., & Zhang, F. (2017). Corporate social responsibility, institutional environments, and tax avoidance: Evidence from a subnational comparison in China. International Journal of Accounting, 52(4), 303-318. doi: 10.1016/j.intacc.2017.11.002

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