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

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dc.contributor.author Hasan, Iftekhar
dc.contributor.author Hoi, Chun-Keung (Stan)
dc.contributor.author Wu, Qiang
dc.contributor.author Zhang, Hao
dc.date.accessioned 2020-05-15T12:23:30Z
dc.date.available 2020-05-15T12:23:30Z
dc.date.issued 2017
dc.identifier.issn 0021-8456E
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/17081
dc.description.abstract 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
dc.language.iso ENG
dc.subject sosiaaliset verkostot
dc.subject verotus
dc.subject sosiaalinen pääoma
dc.subject yritykset
dc.subject veronkierto
dc.subject Yhdysvallat
dc.subject piirikunnat
dc.subject.other social capital
dc.subject.other social network
dc.subject.other social norm
dc.subject.other tax aggressiveness
dc.subject.other tax avoidance
dc.title Does Social Capital Matter in Corporate Decisions? Evidence from Corporate Tax Avoidance
dc.type Journal Article
dc.identifier.urn URN:NBN:fi:bof-202002181157
dc.subject.jel A13
dc.subject.jel H26
dc.subject.jel M40
dc.subject.jel M41
dc.subject.jel Z13
dc.series.name Journal of Accounting Research
dc.series.volume 55
dc.series.number 3 ; June
dc.date.publication 17.1.2017
dc.description.publication BoF DP 21/2017
dc.relation.url http://onlinelibrary.wiley.com/doi/10.1111/1475-679X.12159/abstract
dc.type.okm A1
dc.format.pagerange 629-668

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