Does corporate social responsibility affect the fiscal aggressiveness of firms? Evidence of the Brazilian stock market

• Main Authors: Larissa Queiroz de Melo, Gabriela Silva de Castro Moraes, Rafael Morais de Souza, Eduardo Mendes Nascimento
• Format: Article
• Language: English
• Published: Conselho Regional de Contabilidade de Santa Catarina 2020-09-01
• Series: Revista Catarinense da Ciência Contábil
• Subjects: agressividade fiscal; responsabilidade social corporativa; effective tax rate.
• Online Access: http://revista.crcsc.org.br/index.php/CRCSC/article/view/3019

This research analyzes the effects of the dimensions of corporate social responsibility (CSR) on the level of tax aggressiveness of publicly traded Brazilian companies. To this end, the performance in relation to companies' CSR was identified from the environmental, social and governance dimensions. After that, an aggregate variable was used that represents the general average of the companies in all dimensions. Tax aggressiveness was measured by calculating the effective tax rate (ETR). The analysis period comprised the years 2010 to 2018 and the analyzed models were operationalized from multiple regressions of panel data with estimation by feasible generalized least squares (FGLS). The results reveal a significant relationship between CSR and tax aggressiveness, indicating that adopting more or better CSR practices, regardless of their size, results in a lower level of tax aggressiveness for the companies analyzed in the sample. In general, the findings found reinforce the notion that CSR can affect organizational decisions.