Commenced in January 2007
Paper Count: 30184
Corporate Social Responsibility Disclosure, Tax Aggressiveness and Sustainability Report Assurance: Evidence from Thailand
Abstract:This study aims to examine the association between disclosure of social responsibility and tax aggressiveness in developing countries, namely Thailand. This is due to the increasing trend of disclosure of social responsibility in developing countries, even though this disclosure of information is still voluntary. On the other hand, developing countries have low taxation rate and investor protection infrastructures that allow the disclosure of social responsibility to be used opportunistically as a tool to fool the attainment of interests. This study also examines the role of assurance on the association between corporate social responsibility disclosure and tax aggressiveness. The assurance aims to provide confidence that the disclosure of social responsibility by the company is valid. This research builds an index to measure the disclosure of social responsibility based on the rules issued by the innovative Global Reporting. The results of the study are based on a sample of publicly traded companies in Thailand, which showed a positive association between disclosure of corporate social responsibility and tax aggressiveness, but it was further discovered that these results were mitigated by the existence of assurance against disclosure of corporate social responsibility. The results of this study indicate that the disclosure of corporate social responsibility can show that the company cares about the issue of social responsibility but does not automatically make the company as one that holds ethical values in its business practices.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.3566409Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 52
 J. Elkington, “Partnerships from cannibals with forks: the triple bottom line of 21st-century business,” Environmental Quality Management, vol. 8, no. 1, pp. 37-51, 1998.
 M. Orlitzky, F. L. Schmidt, and S. L. Rynes, “Corporate social and financial performance: a meta-analysis,” Organization Studies, vol. 24, no. 3, pp. 403-441, 2003.
 J. Blazovich, and L. M. Smith, “Ethical corporate citizenship: does it pay?” SSRN Working Paper Series, 2010.
 B. Lev, C. Petrovits, and S. Radhakhrisnan, “Is doing good good for you? how corporate charitable contributions enhance revenue growth,” Strategic Management Journal, vol. 31, no. 2, pp. 182-200, 2010.
 M. A. Harjoto and H. Jo, “Corporate governance and CSR nexus,” Journal of Business Ethics,” vol. 100, no. 1, pp. 45-67, 2011.
 Y. G. Wang, “Corporate social responsibility and stock performance – evidence from Taiwan,” Modern Economy, vol. 2, no. 5, pp. 788-799, 2011.
 C. Boonual, W. Prasertsri, and P. Panmanee, “Corporate social responsibility and firm performance in Thailand,” Journal of Business and Retail Management Research, vol. 12, no. 1, pp. 169-177, 2017
 T. C. Ling and N. Sultana, “Corporate social responsibility: what motivates management to disclose?” Social Responsibility Journal, vol. 11, no. 3, pp. 513-534, 2015.
 V. Grougiou, E. Dedoulis, and S. Leventis, “Corporate social responsibility reporting and organizational stigma: the case of “sin” industries,” Journal of Business Research, vol. 69, no. 2, pp. 905-914, 2016.
 C. Hemingway, and P. Maclagan, “Managers’ personal values as drivers of corporate social responsibility,” Journal of Business Ethics, vol. 50, no. 1, pp. 33-44, 2004.
 P. Sikka, “Smoke and mirrors: corporate social responsibility and tax avoidance,” Accounting Forum, vol. 34, no. 3-4, pp. 153-168, 2010.
 C. K. Hoi, Q. Wu, and H. Zhang, “Is corporate social responsibility (CSR) associated with tax avoidance? Evidence from irresponsible CSR activities,” The Accounting Review, vol. 88, no.6, pp. 2025-2059, 2013.
 R. Lanis and G. Richardson, “Corporate social responsibility and tax agressiveness: an empirical analysis, Journal of Accounting and Public Policy, vol. 31, no.1, pp. 86-108, 2012.
 G. Richardson, “The relationship between culture and tax evasion across countries; additional evidence and extensions,” Journal of International Accounting, Auditing, and Taxation, vol. 17, no. 2, pp. 67-78, 2008.
 S. Sujjapongse, “Tax policy and reform in asian countries: Thailand’s perspective,” Journal of Asian Economics, vol. 16, no. 66, pp. 1012-1028, 2005.
 S. Ratanajongkol, H. Davey, and M. Low, “Corporate social responsibility reporting in Thailand: the news is all good and increasing,” Qualitative Research in Accounting and Management, vol. 3, no. 1, pp. 67-83, 2006.
 B. Virakul, K. Koonmee, and G. N. McLean, “CSR activities in award-winning Thai companies,” Social Responsibility Journal, vol. 5, no. 2, pp. 178-199, 2009.
 P. Srisuphaolarn, “From altruistic to strategic CSR: how social value affected CSR development – a case study of Thailand,” Social Responsibility Journal, vol. 9, no. 1, pp. 56-77, 2013.
 H. R. Bowen, Social Responsibilities of the Businessman. New York: Harper & Row, 1953.
 A. B. Carroll, “A Three-Dimensional Conceptual Model of Corporate Performance,” Academy of Management Review, vol. 4 no. 4, pp. 497-505, 1997.
 B. Atkins, “Corporate social responsibility: is it “Irresponsibility”?” The Corporate Governance Advisor, vol. 14, no. 6, pp. 28-29, 2006.
 P. Goel, “Triple bottom line reporting: An analytical approach for corporate sustainability,” Journal of Finance, Accounting and Management, vol. 1, no. 1, pp. 27-42. 2010.
 R. E. Freeman, “The politics of stakeholder theory: some future directors,” Business Ethics Quarterly, vol. 4, no. 4, pp. 409-421, 1994.
 E. Garriga, and D. Melé, “Corporate social responsibility theories: mapping the territory,” Journal of business ethics, vol. 53, no.1, pp. 51-71, 2004.
 L. Watson, “Corporate social responsibility, tax avoidance, and earnings performance,” The Journal of the American Taxation Association, vol. 37, no. 2, pp. 1-21, 2015.
 G. M. Lietz, “Tax avoidance vs tax aggressiveness: a unifying conceptual framework,” Journal Institute of Accounting and Taxation: Munster School of Business and Economics, 2013.
 R. Simnett, A. Vanstraelen, and W. F. Chua, “Assurance on sustainability reports: an international comparison,” The Accounting Review, vol. 84, no. 3, pp. 937-967, 2009.
 L. Preuss, “Tax avoidance and corporate social responsibility: you can’t do both, or can you? Corporate Governance, vol. 10, no.4, pp. 365-374, 2010.
 A. K. Davis, A. G. David, L. K. Krull, and B. M. Williams, “Do socially responsible firms pay more taxes?” The Accounting Review, vol. 91, no. 1, pp. 47-68, 2015.
 B. C. Ballesteros, J. M. Ferrero, and I. M. G. Sanchez, “Mitigating information asymmetry through sustainability assurance: the role of accountants and levels of assurance,” International Business Review, vol. 26, no. 6, pp. 1141-1156, 2017.
 D. Dhaliwal, C. Gleason, and L. Mills, “Last-chance earnings management: using the tax expense to meet analysts’ forecasts,” Contemporary Accounting Research, vol. 21, no. 2, pp. 431–459, 2014.
 S. Wuttichindanon, “Corporate social responsibility disclosure-choices of report and its determinants: empirical evidence from firms listed on the Stock Exchange of Thailand,” Kasetsart Journal of Social Sciences, vol. 38, no. 2. Pp. 156-162, 2017.