Research On The Relationship Between Corporate Social Responsibility And Tax Avoidance Behavior

In recent years,the number of Corporate Social Responsibility(CSR)information released by Chinese companies has increased significantly,reflecting the increased attention to CSR information.The reason behind this is that social responsibility information has been valued by the market and regulatory agencies,making it key to corporate reputation that further affect the business decision.Among them,academic and practice field are both concerned about its impact on tax avoidance.Taxation is an important source of national fiscal funds and it has an indispensable impact on economic and social development.However,for the purpose of improving performance and alleviating financing constraints,more companies are adopting tax incentives to avoid taxation.Specifically,the scope of tax avoidance includes:(1)Striving for more tax incentives in a legal way;(2)Making full use of the adjustment of business models such as transfer pricing for tax planning;(3)Vicious tax avoidance in violation of tax laws.Based on this,the article explores the impact of CSR on the field of tax avoidance.Starting from the relationship between CSR and tax avoidance,this article discusses two different mechanisms of action:risk management and cultural values.From the perspective of risk management,the performance of CSR will increase the goodwill of companies,obtaining tax incentives and a positive reputation,which can provide greater manipulation space for tax avoidance.From the view of cultural values,companies that perform social responsibilities will improve the reputation mechanism and reduce tax avoidance behavior which is considered to be "immoral".This article uses the data of listed companies in A-share market from 2009 to 2018 as a sample to test.And the paper uses factors of corporate governance as the moderating variables,such as nature of property rights under,willingness to disclose information and media coverage.The research found that:(1)CSR is positively correlated with the degree of tax avoidance,confirming the role of risk management;(2)Compared with state-owned enterprises,the positive correlation is more significant in non-state-owned enterprises;(3)Compared with companies that involuntarily disclose social responsibility information,the positive relationship is more significant in the voluntary disclosure enterprises;(4)Media coverage can inhibit the positive relationship between CSR and tax avoidance.This paper verifies the role of risk management in the relationship between CSR and tax avoidance,using corporate governance as a moderating variable,and introducing media coverage to the study for the first time,enriching the research scope of CSR and tax avoidance.The findings of this article are conducive to the regulatory authorities to take measures,combined with the supervision of the media to standardize CSR performance and taxation.