Arbeitspapier
Does social capital matter in corporate decisions? Evidence from corporate tax avoidance
We investigate whether the levels of social capital in US 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 headquarter relocation that changes the exposure to social capital. We conclude that social capital surrounding corporate headquarters provides environmental influences constraining corporate tax avoidance.
- ISBN
-
978-952-323-178-8
- Sprache
-
Englisch
- Erschienen in
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Series: Bank of Finland Research Discussion Papers ; No. 21/2017
- Klassifikation
-
Wirtschaft
Relation of Economics to Social Values
Tax Evasion and Avoidance
Accounting and Auditing: General
Accounting
Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hasan, Iftekhar
Hoi, Chun-Keung (Stan)
Wu, Qiang
Zhang, Hao
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Hasan, Iftekhar
- Hoi, Chun-Keung (Stan)
- Wu, Qiang
- Zhang, Hao
- Bank of Finland
Entstanden
- 2017
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