The Influence of Social Responsibility Practices on Tax Planning: An Empirical Study for Companies Listed on Euronext Lisbon
Abstract
:1. Introduction
2. Literature Review
2.1. Tax Planning
2.2. Corporate Social Responsibility (CSR)
2.3. Tax Planning and Social Responsibility
3. Research Methodology
3.1. Sample and Data Collection
3.2. Variables
3.2.1. Dependent Variable
3.2.2. Independent Variables
3.3. The Linear Regression Model
4. Results and Discussion
5. Conclusions
Author Contributions
Funding
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
1 | According to Conceição et al. (2011), the theory of legitimacy demonstrates the concern of companies with adjusting their actions and activities towards the community while respecting its values and principles. |
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Components | Indicators | Items | Keywords |
---|---|---|---|
Human Resources |
| Career Progression Remuneration Salaries Health Safety Training Employees Human Resources | |
SOCIAL COMPONENT | Community involvement |
| Development Social Economic impact Product Service Society Community Donations Interest |
Human Rights |
| Human rights Equality Gender equality Discrimination | |
CORPORATE GOVERNANCE COMPONENT | Corporate governance |
| Corporate Governance Auditing Internal Control |
ENVIRONMENTAL COMPONENT | Environment |
| Environment Pollution Impact Air Water Biodiversity Energy Renewable |
ECONOMIC COMPONENT | Business Ethics |
| Safety Product Customer Suppliers Corruption. |
Variable | Measure | Calculation |
---|---|---|
Tax planning | Current ETR | |
Cash ETR | ||
GAAP ETR | ||
Corporate Social Responsibility | Social component | Average of human resources indicator items: community involvement and human rights. |
Corporate governance component | Average of the corporate governance indicator items. | |
Environmental component | Average of the environmental indicator items. | |
Economic component | Average of the items in the business ethics indicator. | |
Return on assets | Return on assets | |
Company size | Company size | Ln Log of TA |
Financial leverage | Financial leverage |
Current ETR | ROA | CS | FL | Social CSR | Corporate Governance CSR | Environmental CSR | Economic CSR | |
---|---|---|---|---|---|---|---|---|
Current ETR | 1 | |||||||
ROA | −0.277 * | 1 | ||||||
CS | −0.250 | −0.263 | 1 | |||||
FL | −0.162 | 0.015 | −0.046 | 1 | ||||
Social CSR | 0.138 | −0.413 ** | 0.426 ** | −0.066 | 1 | |||
Corporate governance CSR | −0.107 | −0.123 | 0.250 | 0.083 | 0.110 | 1 | ||
Environmental CSR | −0.066 | −0.258 | 0.602 ** | 0.226 | 0.759 ** | 0.214 | 1 | |
Economic CSR | −0.119 | −0.173 | 0.451 ** | 0.084 | 0.685 ** | 0.296 * | 0.735 ** | 1 |
N | Average | SD | Minimum | Maximum | |
---|---|---|---|---|---|
Current ETR | 51 | 0.1801 | 0.1480 | 0.0028 | 0.5823 |
Cash ETR | 51 | 0.1897 | 0.1825 | 0.0017 | 0.8868 |
GAAP ETR | 51 | 0.2317 | 0.1723 | 0.0043 | 0.8790 |
ROA | 51 | 0.0739 | 0.0918 | 0.0043 | 0.4790 |
CS | 51 | 20.9823 | 2.0161 | 16.5395 | 25.1256 |
FL | 51 | 0.3418 | 0.2338 | 0.0018 | 1.3729 |
Social CSR | 51 | 1.8841 | 0.5928 1 | 0.38 | 2.76 |
Corporate governance CSR | 51 | 2.1569 | 0.3040 | 1.50 | 2.75 |
Environmental CSR | 51 | 1.6912 | 0.9508 | 0.00 | 3.00 |
Economic CSR | 51 | 1.9706 | 0.5377 | 0.50 | 2.75 |
Current Etr | Cash Etr | Gaap Etr | ||
---|---|---|---|---|
Constant | Coefficient | 0.874 | 0.715 | 0.783 |
p-value | 0.006 | 0.067 | 0.036 | |
ROA | Coefficient | −0.468 | −0.516 | −0.557 |
p-value | 0.060 | 0.097 | 0.061 | |
Influence | No | No | No | |
CS | Coefficient | −0.030 | −0.022 | −0.026 |
p-value | 0.025 | 0.176 | 0.100 | |
Influence | Yes | No | No | |
FL | Coefficient | −0.108 | −0.012 | −0.113 |
p-value | 0.266 | 0.920 | 0.332 | |
Influence | No | No | No | |
Social CSR | Coefficient | 0.059 | 0.100 | 0.062 |
p-value | 0.353 | 0.212 | 0.411 | |
Influence | No | No | No | |
Corporate governance CSR | Coefficient | −0.007 | −0.100 | 0.054 |
p-value | 0.924 | 0.254 | 0.513 | |
Influence | No | No | No | |
Environmental CSR | Coefficient | 0.021 | 0.008 | 0.020 |
p-value | 0.635 | 0.890 | 0.705 | |
Influence | No | No | No | |
Economic CSR | Coefficient | −0.062 | 0.000 | −0.099 |
p-value | 0.289 | 0.998 | 0.161 | |
Influence | No | No | No |
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Silva, P.F.; Sá, C.; Eugénio, T. The Influence of Social Responsibility Practices on Tax Planning: An Empirical Study for Companies Listed on Euronext Lisbon. Int. J. Financial Stud. 2024, 12, 73. https://doi.org/10.3390/ijfs12030073
Silva PF, Sá C, Eugénio T. The Influence of Social Responsibility Practices on Tax Planning: An Empirical Study for Companies Listed on Euronext Lisbon. International Journal of Financial Studies. 2024; 12(3):73. https://doi.org/10.3390/ijfs12030073
Chicago/Turabian StyleSilva, Pedro Ferreira, Cristina Sá, and Teresa Eugénio. 2024. "The Influence of Social Responsibility Practices on Tax Planning: An Empirical Study for Companies Listed on Euronext Lisbon" International Journal of Financial Studies 12, no. 3: 73. https://doi.org/10.3390/ijfs12030073