The purpose of this paper is under the analysis framework of the system theory, analyzing the optimal contract mode of agricultural supply chain to guarantee the stability of…
Abstract
Purpose
The purpose of this paper is under the analysis framework of the system theory, analyzing the optimal contract mode of agricultural supply chain to guarantee the stability of agricultural supply chain and the equilibrium of agricultural product market, to analyze the effect of farmers’ risk attitude on the selection of contract modes and to find the way to encourage farmers’ productive effort and to avoid farmers’ hitchhiking behavior, to guarantee the stability of agricultural supply chain.
Design/methodology/approach
Under the guidance of the system theory, using the Stackelberg model and the nonlinear programming theory, this paper comparatively analyzes farmers’ effort (productive effort and sales effort), farmers’ income and the stability of agricultural supply system of four types of contract modes between farmers, third-party organizations and market.
Findings
First, in the agricultural market, market-type contract cannot maximize farmers’ income. The main reason is that farmers do not have enough ability to avoid market risk and to bargain. Second, for farmers of risk seeking, choosing a market-type contract and secondary-income contract can increase their income. Third, under the fixed-purchase price contract, the hitchhiking behavior would happen. Fourth, when farmers’ productive efforts are the same, farmers’ income under the secondary-income contract is higher than under the fixed-purchase price contract. Because under the secondary-income contract, farmers have the opportunity to obtain the secondary distribution of benefits, farmers’ hitchhiking behavior could be avoided.
Originality/value
Analyzing the contract modes between farmers and the third-party organization in the agricultural market could reduce the influence of price fluctuation, avoid the uncertainty of the relationship between the supply and demand, stimulate the productive effort of farmers and provide theoretical guidance for establishing efficient and stable agricultural supply system.
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The purpose of this paper is to analyze the direct and indirect impacts of social organization in promoting Chinese economic growth. It adopts empirical research to test the…
Abstract
Purpose
The purpose of this paper is to analyze the direct and indirect impacts of social organization in promoting Chinese economic growth. It adopts empirical research to test the correlated hypotheses, and tries to put forward some policy suggestions.
Design/methodology/approach
Social organizations are measured by four indicators in this paper. It proposes five hypotheses about the impact of social organization on economic growth and builds an economic growth model including social organization. The ordinary least squares and stepwise regression methods are conducted to estimate the economic growth model with the data from 1999 to 2015.
Findings
Through the empirical analysis, it finds that the added value of social organization, human capital, investment and government budget expenditure affect economic growth significantly. The number of social organization at the end of each year has a positive significant effect on entrepreneurship, while the added value and growth rate of it have a negative effect on it. The numbers of social organization and full-time employee have significant effect on number to workers in the labor force. Only the number of social organization has positive significant effect on public education.
Originality/value
This paper conducts an empirical study on the impact of social organization on economic growth in China and fills a gap of the role of social organization on the economy in developing countries. The results provide referenced information for public policy-making.
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The purpose of this paper is to investigate the dynamics and evolution of trust in organizational cross alliances.
Abstract
Purpose
The purpose of this paper is to investigate the dynamics and evolution of trust in organizational cross alliances.
Design/methodology/approach
In alliances between corporations and nonprofit organizations, trust in decision-making is a dynamic process. Using the replicated dynamics model of evolutionary game theory, this paper provides a trust decision model and analyzes four scenarios under different parameters. A numerical simulation is developed to present an intuitive interpretation of the dynamic development of trust decisions and the effects of incentive and punishment mechanisms.
Findings
Under different parameters, bounded rationality and utilities result in different but stable evolutionary strategies; the initial probability of adopting a trust strategy leads directly to whether participants adopt the strategy when the system reaches stability after continued games; and incentive and punishment mechanisms can significantly reduce the initial probability of adopting a trust strategy where the system evolves to meet stable state needs.
Practical implications
The establishment of trust relationships is an important influence on the stable and coordinated development of an alliance. The proposed model can help the alliance build closer trust relationships and provide a theoretical basis for the design of the trust mechanism.
Originality/value
Incentive and punishment bound by some degree of trust are introduced to address the problems of trust decisions and their dynamics; the model created reflects the bounded rationality and utility of each game stage. Useful evolutionary stable strategies using different variables are proposed to address the decision-making problems of trust in cross alliances.
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Manon Deslandes, Anne Fortin and Suzanne Landry
This study aims to analyze the relationship between a company’s use of aggressive tax planning and several audit committee members’ characteristics, namely, independence…
Abstract
Purpose
This study aims to analyze the relationship between a company’s use of aggressive tax planning and several audit committee members’ characteristics, namely, independence, expertise, diligence and gender diversity.
Design/methodology/approach
This paper is an empirical research using archival data from 289 Canadian listed companies for the 2011-2015 period.
Findings
The authors find that measures of expertise and diligence are significantly related to tax aggressiveness. Financial expertise and tenure on the audit committee play an important role in constraining tax aggressiveness, as does having a larger audit committee.
Research limitations/implications
One limitation – and an area for future research – is that the effects of the audit committee members’ relationships with managers of the firms were not investigated.
Practical implications
Knowledge of audit committee characteristics may send a signal to shareholders, investors and tax agencies regarding the company’s potential risk with respect to aggressive tax planning. The analysis provides useful insights for board governance committees when determining the profile of persons to nominate for board positions and committees. In discussing tax-risk management, the study may heighten audit committee members’ awareness of their role in this respect.
Originality/value
This study’s results indicate that even in a setting where incentives for firms to be tax-aggressive is low compared to high-tax rate countries, there is variability in firms’ tax aggressiveness. This situation allows us to find audit committee characteristics that are effective in decreasing tax aggressiveness.
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Mashiyat Tasnia, Syed Musa Syed Jaafar AlHabshi and Romzie Rosman
Corporate social responsibility (CSR) is considered one of the crucial branding and promotional tools for banks to legitimise their role in society to become socially and…
Abstract
Purpose
Corporate social responsibility (CSR) is considered one of the crucial branding and promotional tools for banks to legitimise their role in society to become socially and environmentally responsible corporate citizen. The purpose of this study is to investigate the effect of CSR on stock price volatility of the US banks. This study further examined the moderating role of tax on the relationship between CSR and stock price volatility.
Design/methodology/approach
This study uses the random-effects panel regression estimation technique to test the hypotheses. The authors include a sample of 37 US banks from 2013 to 2017 with 144 bank-years observation. The authors consider the environmental, social and governance (ESG) scores from Refinitiv as a proxy for CSR. The financial data are also collected from the Refinitiv Datastream database.
Findings
This study finds a significant and positive relationship between CSR and stock price volatility, which indicates that shareholders of the US banks may not prefer excess concentration on CSR because of the additional cost of investment associated with implementing CSR. Also, tax payments and stock price volatility show a significant positive association, which implies that there is a higher possibility of an increase in stock price volatility if the tax rate increases. Generally, shareholders are not interested in paying more taxes, so they may swap the market instead of paying more tax. On the other hand, the authors find a non-significant moderating effect of tax payment on CSR-volatility nexus.
Originality/value
Previous studies mainly focussed on CSR and financial performance of banks. Conversely, studies focussing on CSR and stock volatility are limited. This study will fill the gap in the literature by considering the effect of CSR on the stock price volatility of the US banks.
Jamel Chouaibi, Matteo Rossi and Nouha Abdessamed
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…
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.
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Sameh Kobbi-Fakhfakh and Fatma Bougacha
This study aims to examine the impact of the COVID-19 pandemic on corporate tax avoidance (TA).
Abstract
Purpose
This study aims to examine the impact of the COVID-19 pandemic on corporate tax avoidance (TA).
Design/methodology/approach
This study used a panel data set of US publicly traded firms listed in the Standard & Poor 500 index. Based on available information in the DATASTREAM database covering the 2019–2021 period, three proxies for TA are used, namely the current effective tax rate (CUETR), the cash effective tax rate and book-tax differences (BTD). Multiple regression models including industry and year fixed effects are estimated. Additional analyses are performed using BTD components i.e. temporary and permanent BTD, and testing the impact of the COVID-19 pandemic across industries.
Findings
The results show that the outbreak of the novel coronavirus (COVID-19) affected positively the CUETRs and negatively BTD, indicating a reduction in TA, in the postpandemic period. Further analyses provide evidence that this effect is the same, regardless of the degree of industry failure probability, but it is more driven by the reduction of deferred tax expenses (temporary BTD component). These findings suggest that the US publicly listed firms have experienced a serious drop in their income in the postpandemic period, following the markets closure and the quarantine periods that hampered business. Therefore, with lower profits, they are not willing to evade taxes.
Social implications
This paper enriches taxation research during economic crises. The research findings have important policy implications. On the one hand, the fiscal policy should stimulate growth to allow firms to tackle the challenges they confronted post-COVID-19. On the other hand, the global economic crisis caused by the pandemic has led to a major deterioration in public finances and has raised inequalities across households. Therefore, it would be necessary to review public fiscal policies to achieve a balance of equity, growth and sustainability. In this context, tax reform focusing on tax progressivity could counter in part the negative economic effects of the COVID-19 pandemic and led to economy recovery.
Originality/value
This study contributes to the growing body of literature on the COVID-19 effects with a special focus on corporate practices. This study provides first evidence on the effect of the COVID-19 pandemic on manager’s behavior from taxation perspective. This study also enriches taxation research during economic crises.
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Rima Kusuma Rini, Desi Adhariani and Dahlia Sari
This study aims to investigate the association between corporate tax avoidance and environmental costs and disclosure in Indonesia and Australia for the research period 2015–2019…
Abstract
Purpose
This study aims to investigate the association between corporate tax avoidance and environmental costs and disclosure in Indonesia and Australia for the research period 2015–2019. This study also analyzes corporate strategies for overcoming public concerns about tax avoidance activities, namely, the trade-off legitimacy and risk reduction strategies, through two mechanisms: the mediation and moderation roles of environmental disclosure on the relationship between environmental costs and tax avoidance activities.
Design/methodology/approach
The data consists of 675 and 235 observations for Australia and Indonesia, respectively, which were analyzed quantitatively using panel regression.
Findings
The results showed that the trade-off legitimacy or risk reduction strategies are not found to be implemented by companies in Indonesia, while in Australia, corporations use the trade-off legitimacy strategy to reduce risk and overcome the negative impact of tax avoidance activities. The results also provide empirical evidence on the impact of environmental costs on environmental disclosure in both countries.
Originality/value
This study contributes to the literature by providing the latest evidence on the role of environmental costs on environmental disclosure, which has rarely been investigated in previous studies.
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Edda Óskarsdóttir, Verity Donnelly, Marcella Turner-Cmuchal and Lani Florian
This article presents a model based on a review of international and European policy and current European Agency for Special Needs and Inclusive Education work on school…
Abstract
Purpose
This article presents a model based on a review of international and European policy and current European Agency for Special Needs and Inclusive Education work on school leadership for inclusive education. The model aims to support analysis of the policy context and interactions between the structures and processes at different levels to ensure effective support for inclusive school leadership and development of appropriate competences. Key issues addressing competences for inclusive school leadership, support and professional development opportunities for inclusive school leaders and policy frameworks that support inclusive leadership across the whole education system are explored.
Design/methodology/approach
This paper reports on a current Agency project, Supporting Inclusive School Leadership (SISL), a cross-national project that considers how best to ensure that school leaders meet the needs of all learners in their school communities. The SISL project examines current theories of school leadership together with the core functions of school leaders in participating countries in order to develop a model specifically focused on inclusive school leadership.
Findings
Agency projects such as SISL focus on research findings and policy developments that support countries to chart their own course toward a common goal. This process of cross-national working permits member countries with their distinctive national, ethnic, cultural and linguistic diversities to work together on common goals. In this project an ecosystem model of inclusive education was adapted to reflect on the policy context needed to enable school leaders to fulfill the complex responsibilities associated with inclusive school development.
Originality/value
Although the Agency is strongly associated with the education of children with special educational needs and disabilities, all member countries have the shared vision to support inclusive education systems so that all learners of any age are provided with meaningful, high-quality educational opportunities in their local community. While its projects are firmly rooted in the 2006 UN Convention on the Rights of Persons with Disabilities, its work is also influenced by the concept of inclusion as promoted in the UN Sustainable Development Goal (SDG) 4) “to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.”
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Shannon Jemiolo and Curtis Farnsel
This review analyzes the existing theoretical and empirical research on the relation between corporate taxation and corporate social responsibility (CSR). By synthesizing the…
Abstract
Purpose
This review analyzes the existing theoretical and empirical research on the relation between corporate taxation and corporate social responsibility (CSR). By synthesizing the current literature regarding the directional relation between tax avoidance and CSR, the authors are able to identify areas where further research on this relation should be targeted to maximize the public interest.
Design/methodology/approach
The authors conduct a literature review of articles published in leading journals in the fields of accounting, finance and management. Reputable working papers are included to support emerging trends in the research and suggest meaningful paths forward.
Findings
The literature reveals a complex relation between corporate tax avoidance and CSR. The published research offers theoretical and empirical support for both a substitutive and a complementary directional relation. An actionable takeaway from this review is that corporate taxation must be considered jointly with CSR when seeking to maximize the public interest.
Originality/value
The authors find a rapid influx of research over the past decade that explores the complex directional relation between corporate tax avoidance and CSR. This review will be useful to researchers that are interested in moving beyond a directional characterization of this relation. By synthesizing both established and emerging literature, the authors provide a foundation and direction for future research to examine issues that may directly inform tax or firm policies to increase overall stakeholder welfare.