Corporate Social Responsibility Disclosure And Tax Aggressiveness

Tax aggressiveness has become a focus of medium.On the one hand,enterprise wants to maximize the shareholders' interest by paying less social costs,including tax costs.On the other hand,government hopes enterprise to fulfill their social responsibility and carries out policies to eliminate business tax evasions.According to the risk-management argument,a firm can reduce its risk of anti-political,regulatory and social sanctions by taking social responsibility,which helps to reduce the negative impact of tax aggressiveness.At present,China is at such a relatively low level of marketization that has provided chances for enterprise to get political connection in order to capture key resources.From the perspective of risk-management argument,this paper studies the relationship between corporate social responsibility disclosure and tax aggressiveness based on the political connection by using samples of China's listed firms from 2008 to 2016.The results show that corporate social responsibility disclosure significantly strengthens the possibility of tax aggressiveness;firms with no or less close political connections can make use of the disclosure of corporate social responsibility to do tax aggressiveness.Furthermore,the change of political connection can significantly weaken the positive association between corporate social responsibility disclosure and tax aggressiveness.These findings help governments,managers and investors to evaluate firm's behavior and make decisions.