Corporate social responsibility and tax aggressiveness: A test of legitimacy theory

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dc.contributor.author Lanis, R
dc.contributor.author Richardson, G
dc.date.accessioned 2014-04-03T02:24:18Z
dc.date.issued 2013
dc.identifier.citation Accounting, Auditing and Accountability Journal, 2013, 26 (1), pp. 75 - 100
dc.identifier.issn 0951-3574
dc.identifier.other C1 en_US
dc.identifier.uri http://hdl.handle.net/10453/23683
dc.description.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. © Emerald Group Publishing Limited.
dc.language eng
dc.relation.isbasedon 10.1108/09513571311285621
dc.title Corporate social responsibility and tax aggressiveness: A test of legitimacy theory
dc.type Journal Article
dc.parent Accounting, Auditing and Accountability Journal
dc.journal.volume 1
dc.journal.volume 26
dc.journal.number 1 en_US
dc.publocation United Kingdom en_US
dc.identifier.startpage 75 en_US
dc.identifier.endpage 100 en_US
dc.cauo.name BUS.School of Accounting en_US
dc.conference Verified OK en_US
dc.for 150106 Sustainability Accounting and Reporting
dc.for 150107 Taxation Accounting
dc.personcode 040045
dc.percentage 50 en_US
dc.classification.name Taxation Accounting en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords Australia
dc.description.keywords Corporate social responsibility
dc.description.keywords Disclosure
dc.description.keywords Legitimacy theory
dc.description.keywords Social responsibility
dc.description.keywords Tax aggressiveness
dc.description.keywords Taxes
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/School of Accounting
utslib.copyright.status Closed Access
utslib.copyright.date 2015-04-15 12:17:09.805752+10
pubs.consider-herdc true
utslib.collection.history Closed (ID: 3)


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