Tax avoidance, corporate governance, and corporate social responsibility: The case of the Egyptian capital market

Abdelfattah, Tarek; Aboud, Ahmed

Abstract

This paper examines the relationship between tax avoidance, corporate governance, and corporate social responsibility (CSR) disclosure. It also investigates the effect of CSR on stock market returns. Using a sample of Egyptian firms for the period 2007–2016, we provide robust new evidence that corporate tax avoidance is positively associated with CSR disclosure. We find evidence that businesses with a more sophisticated board of directors, measured by the presence of family or foreign members, provide more CSR disclosure. Finally, the findings of this study indicate that firms making higher CSR disclosures have greater stock returns, suggesting that CSR is value-enhancing. These findings have important implications for capital markets’ users and policymaker in emerging economies.

Citation

Abdelfattah, T., & Aboud, A. (2020). Tax avoidance, corporate governance, and corporate social responsibility: The case of the Egyptian capital market. Journal of International Accounting, Auditing and Taxation, 38, Article 100304. https://doi.org/10.1016/j.intaccaudtax.2020.100304

• Journal Article Type: Article
• Acceptance Date: Feb 22, 2020
• Online Publication Date: Apr 29, 2020
• Publication Date: 2020-03
• Deposit Date: Nov 14, 2022
• Publicly Available Date: Nov 22, 2022
• Journal: Journal of International Accounting, Auditing and Taxation
• Print ISSN: 1061-9518
• Electronic ISSN: 1879-1603
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 38
• Article Number: 100304
• DOI: https://doi.org/10.1016/j.intaccaudtax.2020.100304
• Public URL: https://nottingham-repository.worktribe.com/output/13740886
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S1061951820300057