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The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context

Jamel Chouaibi (Department of Accounting, Faculty of Economics and Management of Sfax, University of Sfax, Sfax, Tunisia)
Matteo Rossi (Department of Law, Economics, Management and Quantitative Methods, University of Sannio, Sannio, Italy)
Nouha Abdessamed (Department of Accounting, Faculty of Economics and Management of Sfax, University of Sfax, Sfax, Tunisia)

Competitiveness Review

ISSN: 1059-5422

Article publication date: 28 October 2021

Issue publication date: 21 April 2022

2469

Abstract

Purpose

The purpose of this paper is to examine the negative impact of corporate social responsibility (CSR), business ethics and responsible corporate governance on tax avoidance within a sample of 119 French industrial companies from 2010 to 2019.

Design/methodology/approach

To test the current hypotheses of this study, the authors applied linear regressions with panel data using the Thomson Reuters ASSET4 database from a sample of 119 French companies over the period of 2010–2019.

Findings

The results show that companies with no conduction of CSR activities are more aggressive in the avoidance of taxes than others, confirming the idea that CSR could be seen as a facet of corporate culture that affects business corporate tax avoidance.

Practical implications

The results have interesting implications for investors and other partners who are interested in the business. Thus, for the government, to develop financial transparency, the improvement of the means of legal action such as the tax administration and the support of the action of civil society are pivotal to strengthen the legitimacy of tax.

Originality/value

This work is one of the studies that examine the effect of CSR, ethics and responsible governance on tax avoidance.

Keywords

Acknowledgements

The authors would like to thank the Editor and the two anonymous referees of the “Competitiveness Review” for their insightful comments that have greatly benefitted the paper. The author(s) received no financial support for the research, authorship and/or publication of this article.

Citation

Chouaibi, J., Rossi, M. and Abdessamed, N. (2022), "The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context", Competitiveness Review, Vol. 32 No. 3, pp. 326-349. https://doi.org/10.1108/CR-04-2021-0062

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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