Corporate Social Responsibility and Corporate Tax Avoidance: The Channel Effect of Consumer Awareness

Mohammed Benlemlih; Jamil Jaballah; Sholom Schochet; Jonathan Peillex

doi:10.1111/jbfa.12638

Corporate Social Responsibility and Corporate Tax Avoidance: The Channel Effect of Consumer Awareness

Mohammed Benlemlih^*, Jamil Jaballah, Sholom Schochet, Jonathan Peillex

^*Corresponding author for this work

College of Business and Management

Research output: Contribution to journal › Article › peer-review

Abstract

This paper investigates the relationship between corporate social responsibility (CSR) and corporate tax avoidance and the impact of consumer awareness on the constructs. We show that consumer awareness has the effect of decreasing the positive relation between CSR ratings and tax avoidance levels. Our findings are robust to various measures of our constructs. Collectively, the findings of this study lend credence to the risk-management view of CSR and demonstrate that consumer awareness acts as a behavioral intervention and governance mechanism to help mitigate corporate hypocrisy.

Original language	American English
Pages (from-to)	31-60
Number of pages	30
Journal	Journal of Business Finance and Accounting (JBFA)
Volume	50
Issue number	1-2
Early online date	Jun 7 2022
DOIs	https://doi.org/10.1111/jbfa.12638
State	Published - Jan 2023

Bibliographical note

Publisher Copyright:
© 2022 John Wiley & Sons Ltd.

ASJC Scopus Subject Areas

Business, Management and Accounting (miscellaneous)
Accounting
Finance

Keywords

consumer awareness
corporate social responsibility
corporate tax avoidance
hypocrisy
reputation

Access to Document

10.1111/jbfa.12638License: Unspecified

http://spiral.lynn.edu/facpubs/1130

Cite this

@article{d39468d05a194459b67cf2c6666a98c6,

title = "Corporate Social Responsibility and Corporate Tax Avoidance: The Channel Effect of Consumer Awareness",

abstract = "This paper investigates the relationship between corporate social responsibility (CSR) and corporate tax avoidance and the impact of consumer awareness on the constructs. We show that consumer awareness has the effect of decreasing the positive relation between CSR ratings and tax avoidance levels. Our findings are robust to various measures of our constructs. Collectively, the findings of this study lend credence to the risk-management view of CSR and demonstrate that consumer awareness acts as a behavioral intervention and governance mechanism to help mitigate corporate hypocrisy.",

keywords = "consumer awareness, corporate social responsibility, corporate tax avoidance, hypocrisy, reputation",

author = "Mohammed Benlemlih and Jamil Jaballah and Sholom Schochet and Jonathan Peillex",

note = "Publisher Copyright: {\textcopyright} 2022 John Wiley & Sons Ltd.",

year = "2023",

month = jan,

doi = "10.1111/jbfa.12638",

language = "American English",

volume = "50",

pages = "31--60",

journal = "Journal of Business Finance and Accounting (JBFA)",

issn = "0306-686X",

publisher = "John Wiley & Sons Ltd",

number = "1-2",

}

TY - JOUR

T1 - Corporate Social Responsibility and Corporate Tax Avoidance: The Channel Effect of Consumer Awareness

AU - Benlemlih, Mohammed

AU - Jaballah, Jamil

AU - Schochet, Sholom

AU - Peillex, Jonathan

PY - 2023/1

Y1 - 2023/1

N2 - This paper investigates the relationship between corporate social responsibility (CSR) and corporate tax avoidance and the impact of consumer awareness on the constructs. We show that consumer awareness has the effect of decreasing the positive relation between CSR ratings and tax avoidance levels. Our findings are robust to various measures of our constructs. Collectively, the findings of this study lend credence to the risk-management view of CSR and demonstrate that consumer awareness acts as a behavioral intervention and governance mechanism to help mitigate corporate hypocrisy.

AB - This paper investigates the relationship between corporate social responsibility (CSR) and corporate tax avoidance and the impact of consumer awareness on the constructs. We show that consumer awareness has the effect of decreasing the positive relation between CSR ratings and tax avoidance levels. Our findings are robust to various measures of our constructs. Collectively, the findings of this study lend credence to the risk-management view of CSR and demonstrate that consumer awareness acts as a behavioral intervention and governance mechanism to help mitigate corporate hypocrisy.

KW - consumer awareness

KW - corporate social responsibility

KW - corporate tax avoidance

KW - hypocrisy

KW - reputation

UR - http://lynn-lang.student.lynn.edu/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=161757813&site=ehost-live&scope=site

UR - http://www.scopus.com/inward/record.url?scp=85132572532&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85132572532&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/f7e928d3-a148-3c6f-b3e5-bb703b886a4d/

U2 - 10.1111/jbfa.12638

DO - 10.1111/jbfa.12638

M3 - Article

SN - 0306-686X

VL - 50

SP - 31

EP - 60

JO - Journal of Business Finance and Accounting (JBFA)

JF - Journal of Business Finance and Accounting (JBFA)

IS - 1-2

ER -

Corporate Social Responsibility and Corporate Tax Avoidance: The Channel Effect of Consumer Awareness

Abstract

Bibliographical note

ASJC Scopus Subject Areas

Keywords

Access to Document

Other files and links

Cite this