Title: Impact of corporate social responsibility on tax avoidance: evidence from French companies

Authors: Amel Salah; Zyed Achour; Rim Boussaada

Addresses: Higher Institute of Management of Tunis, University of Tunis, GEF-2A Lab, Tunis, Tunisia ' University of Tunis, GEF-2A Lab, Tunis, Tunisia; National Institute of Labor and Social Studies, University of Carthage, Tunis, Tunisia ' Higher Institute of Management of Tunis, University of Tunis, GEF-2A Lab, Tunis, Tunisia

Abstract: This research aims to examine how corporate social responsibility (CSR) dimensions influence tax avoidance. Drawing on agency theory, we hypothesize significant links between the environmental, social and governance dimensions of CSR and tax avoidance. Using a sample of 104 French companies belonging to SBF120 over the period 2011-2020, through a dynamic panel model, the empirical results show that corporate tax avoidance, measured by effective tax rate (ETR), depends on the nature of their CSR activities. In particular, our findings suggest that strong activity in the social dimension of CSR is associated with a lower level of tax avoidance, while strong activity in the environmental and governance dimensions is linked to a high level of tax avoidance. The search results remain valid under a robustness test.

Keywords: tax avoidance; corporate social responsibility; CSR; effective tax rate; ETR; GAAP ETR; cash ETR.

DOI: 10.1504/AJFA.2023.136698

American Journal of Finance and Accounting, 2023 Vol.7 No.3/4, pp.235 - 257

Received: 03 Apr 2023
Accepted: 22 Dec 2023
Published online: 16 Feb 2024 *

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