Grant Richardson, Grantley Taylor and Roman Lanis
This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia.
Abstract
Purpose
This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia.
Design/methodology/approach
The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure.
Findings
This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness.
Research limitations/implications
This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia.
Practical implications
This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors.
Originality/value
This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.
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Roman Lanis and Grant Richardson
The purpose of this paper is to empirically test legitimacy theory by comparing the corporate social responsibility (CSR) disclosures of tax aggressive corporations with those of…
Abstract
Purpose
The purpose of this paper is to empirically test legitimacy theory by comparing the corporate social responsibility (CSR) disclosures of tax aggressive corporations with those of non‐tax aggressive corporations in Australia.
Design/methodology/approach
A unique sample of 20 Australian corporations accused by the Australian Taxation Office of engaging in tax aggressive activities during the 2001‐2006 period was hand‐collected. These 20 tax aggressive corporations were then matched with 20 non‐tax aggressive corporations (based on industry classification, corporation size and time period). This process generated a choice‐based sample of 40 corporations for empirical analysis. Using content analysis techniques, financial accounting data were gathered from the Aspect‐Huntley database and CSR disclosures were individually measured for each corporation in the sample. Various statistical techniques were then used (e.g. paired sample statistics, Pearson correlation analysis and ordinary least squares regression analysis) to test legitimacy theory.
Findings
Overall, the empirical results consistently show a positive and statistically significant association between corporate tax aggressiveness and CSR disclosure, thereby confirming legitimacy theory in the context of corporate tax aggressiveness.
Originality/value
The paper provides empirical evidence in support of legitimacy theory as an explanation for why specific corporations disclose more CSR‐related information than others. Additionally, to the best of the authors' knowledge, the paper is one of the first to document an empirical association between corporate tax aggressiveness and CSR in the literature.
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Sayd Farook, M. Kabir Hassan and Roman Lanis
The purpose of this paper is to develop and test a theoretical model of the determinants of Islamic banks' social disclosures. In testing the hypotheses, the level of social…
Abstract
Purpose
The purpose of this paper is to develop and test a theoretical model of the determinants of Islamic banks' social disclosures. In testing the hypotheses, the level of social disclosure in Islamic banks' annual reports is gauged based on a benchmark derived from Islamic principles.
Design/methodology/approach
Applying the principles of systems‐oriented theories such as political economy, legitimacy and stakeholder theories, as well as agency theory, hypotheses linking Islamic social disclosure and its determinants are developed. The sample comprised 47 Islamic banks in 14 countries and the data related to the dependent (Islamic banks social disclosures) variable are collected mainly from the annual reports, while data for the independent variables (determinants) are collected from various sources. Regression analysis was conducted to test the hypotheses.
Findings
Corporate social responsibility (CSR) disclosure by Islamic banks varies significantly across the sample. According to the regression results, variation is best explained by the “influence of the relevant publics” and the “Shari'ah (SSB supervisory boards) corporate governance mechanism” variables. Using alternative variable measures, the regression results suggest that “level of social and political freedom” and “the proportion of investment account deposits to total assets” are also significant determinants of Islamic banks' CSR disclosure.
Research limitations/implications
The major limitation of this paper is the small sample size of only 47 Islamic banking institutions. Future studies may expand the sample size used here.
Practical implications
The results indicate the significance of the SSB as a governance mechanism that may increase the CSR disclosure of Islamic banks. Thus, from a policy perspective, bodies that regulate Islamic banking should consider mandating the SSB for all “Islamic banks”.
Originality/value
This research is the first to provide an a priori basis for CSR disclosure of Islamic banks and to test using empirical data. The findings of this research should be of significant value to regulators, shareholders and deposit holders of Islamic banks. In a more general context, this paper is one of a few that has operationalised Gray et al.'s conception of “levels of resolution of perception” and empirically tested the concept using non‐traditional organisations (Islamic banks) in a non‐Western context. This adds further credibility to systems‐oriented theories in explaining CSR disclosures of non‐Western organisations operating in non‐Western cultures.
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Abstract
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Alexandra L. Ferrentino, Meghan L. Maliga, Richard A. Bernardi and Susan M. Bosco
This research provides accounting-ethics authors and administrators with a benchmark for accounting-ethics research. While Bernardi and Bean (2010) considered publications in…
Abstract
This research provides accounting-ethics authors and administrators with a benchmark for accounting-ethics research. While Bernardi and Bean (2010) considered publications in business-ethics and accounting’s top-40 journals this study considers research in eight accounting-ethics and public-interest journals, as well as, 34 business-ethics journals. We analyzed the contents of our 42 journals for the 25-year period between 1991 through 2015. This research documents the continued growth (Bernardi & Bean, 2007) of accounting-ethics research in both accounting-ethics and business-ethics journals. We provide data on the top-10 ethics authors in each doctoral year group, the top-50 ethics authors over the most recent 10, 20, and 25 years, and a distribution among ethics scholars for these periods. For the 25-year timeframe, our data indicate that only 665 (274) of the 5,125 accounting PhDs/DBAs (13.0% and 5.4% respectively) in Canada and the United States had authored or co-authored one (more than one) ethics article.
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David Alexander, Adriana Tiron-Tudor and Ioana Dragu
This paper aims to focus on corporate accountability, analysing the case of Rosia Montana Gold Corporation (RMGC) from the perspective of civil society, acting as a significant…
Abstract
Purpose
This paper aims to focus on corporate accountability, analysing the case of Rosia Montana Gold Corporation (RMGC) from the perspective of civil society, acting as a significant stakeholder.
Design/methodology/approach
The authors ground the research on legitimacy theory, as the paper presents the company’s efforts to obtain the approval/legitimacy from one of its main vocal stakeholders: civil society. The paper presents the historical background of the Rosia Montana region, and then explains the stages of the RMGC project development, together with the company’s actions to be recognised by the local environment. They also investigate the corporate reports issued by Rosia Montana Gold Corporation, especially in and after 2010.
Findings
The results show that RMGC failed to gain the legitimacy of the Romanian society, and the authors discuss causes and implications.
Originality/value
This research brings a valuable contribution to the corporate reporting literature, being one of the first studies on the state of reporting in Romania in the mining sector, analysing the implications of the relationship between corporate accountability and civil society.
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Ahmed Hassanein and Hana Tharwat
This chapter explores the concept of corporate social responsibility (CSR) from an Islamic Shari'ah-compliant perspective. It provides a comprehensive literature review on CSR…
Abstract
This chapter explores the concept of corporate social responsibility (CSR) from an Islamic Shari'ah-compliant perspective. It provides a comprehensive literature review on CSR with an explicit focus on the Islamic perspective of CSR, Islamic models of CSR, CSR practices in conventional and Islamic banks, and the consequences of CSR to Islamic banks. This chapter's main contribution lies in considering the current CSR literature from a Shari'ah perspective. Likewise, it identifies gaps in the current literature and suggests potential areas for future research. This chapter attempts to improve the understanding of how Islamic banks integrate social responsibility into their operations. The insights from this chapter are helpful to practitioners and academic scholars in Islamic finance, accounting, and CSR. This chapter emphasizes the importance of incorporating Islamic values and principles into CSR practices and encourages further research and investigation in this area.
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BOURNEMOUTH lies in one of the most beautiful parts of South‐west England; and all the world knows how this region has been immortalised by Thomas Hardy, who by his romances and…
Abstract
BOURNEMOUTH lies in one of the most beautiful parts of South‐west England; and all the world knows how this region has been immortalised by Thomas Hardy, who by his romances and poems has introduced to the public of England and America the ancient land of Wessex.
Adel Elgharbawy and Laila Mohamed Alshawadfy Aladwey
This paper aims to investigate the effect of ESG performance and board diversity on tax avoidance practices of FTSE350 companies before and after the COVID-19 pandemic from the…
Abstract
Purpose
This paper aims to investigate the effect of ESG performance and board diversity on tax avoidance practices of FTSE350 companies before and after the COVID-19 pandemic from the stakeholder theory perspective.
Design/methodology/approach
Using random-effect regression analysis on data from 2017 to 2023, the study analyzes ESG scores and various tax avoidance measures pre- and post-COVID-19. A two-stage least squares regression analysis using instrumental variables is used to address endogeneity.
Findings
Results show that gender, age and network diversity reduce tax avoidance, while skill diversity has no effect, and nationality diversity increases it. High ESG scores lower tax avoidance, but higher governance scores increase it. Findings hold across different tax avoidance measures, sectors and pre/post-COVID-19 periods.
Research limitations/implications
Future research should explore the roles of board committees and external governance mechanisms and investigate tax avoidance in small- and medium-sized enterprises.
Practical implications
The findings highlight the need for policymakers to enforce board diversity and promote ESG practices to encourage ethical tax behavior. Companies can reduce tax avoidance and enhance moral standards by prioritizing stakeholder interests.
Social implications
Promoting board diversity enhances social equity, supports ESG practices, aligns corporate actions with societal values and fosters a sustainable business environment.
Originality/value
The paper expands existing research by analyzing the combined effects of board diversity and ESG performance on tax avoidance. It offers recent UK evidence on tax avoidance determinants, emphasizing behavioral changes pre- and post-COVID-19.