Does Social Capital Matter in Corporate Decisions? Evidence from Corporate Tax Avoidance

Visa fullständig post

Titel: Does Social Capital Matter in Corporate Decisions? Evidence from Corporate Tax Avoidance
Författare: Hasan, Iftekhar ; Hoi, Chun-Keung (Stan) ; Wu, Qiang ; Zhang, Hao
Serie: Journal of Accounting Research
Serievolum: 55
Serienumber: 3 ; June
Utgivningsår: 2017
Utgivningsdatum: 17.1.2017
Publicerad i: BoF DP 21/2017
Sidintervall: 629-668
Nyckelord: sosiaaliset verkostot; verotus; sosiaalinen pääoma; yritykset; veronkierto; Yhdysvallat; piirikunnat
JEL: A13; H26; M40; M41; Z13
Andra nyckelord: social capital; social network; social norm; tax aggressiveness; tax avoidance
Abstrakt: We investigate whether the levels of social capital in U.S. counties, as captured by strength of civic norms and density of social networks in the counties, are systematically related to tax avoidance activities of corporations with headquarters located in the counties. We find strong negative associations between social capital and corporate tax avoidance, as captured by effective tax rates and book-tax differences. These results are incremental to the effects of local religiosity and firm culture toward socially irresponsible activities. They are robust to using organ donation as an alternative social capital proxy and fixed effect regressions. They extend to aggressive tax avoidance practices. Additionally, we provide corroborating evidence using firms with headquarters relocation that changes the exposure to social capital. We conclude that social capital surrounding corporate headquarters provides environmental influences constraining corporate tax avoidance. Copyright ©, University of Chicago on behalf of the Accounting Research Center, 2016
Länk: http://onlinelibrary.wiley.com/doi/10.1111/1475-679X.12159/abstract


Filer under denna titel

Filer Storlek Format Granska

There are no files associated with this item.

Detta dokument registreras i samling:

Visa fullständig post