The Effect of Adopting Corporate Social Responsibility on Tax Avoidance Practices Through the Compliance With Corporate Governance Mechanisms

Abstract

This study aims to theoretically investigate the effect of activating corporate governance (CG) mechanisms on the association between adopting corporate social responsibility (CSR) and tax avoidance (TA). Based on the analyzing of the previous studies, the authors support the results of studies that found a positive effect for activating CG on the adoption of CSR. Also, they found that there is a negative impact of activating CG mechanisms on TA, as CG includes controls and procedures that contribute to limiting opportunistic behaviors of management and ensures making decisions that maximize value for shareholders. To the best of the authors' knowledge, it is the only chapter that examines the effect of activating CG mechanisms on the association between CSR and TA.

Citation

Ismail, T.H., Mohamed Zidan, E.S. and Seleem, E.A. (2024), "The Effect of Adopting Corporate Social Responsibility on Tax Avoidance Practices Through the Compliance With Corporate Governance Mechanisms", Hunjra, A.I. and Hussainey, K. (Ed.) The Emerald Handbook of Ethical Finance and Corporate Social Responsibility, Emerald Publishing Limited, Leeds, pp. 607-621. https://doi.org/10.1108/978-1-80455-406-720241027