The Relationship between Tax Avoidance and ESG Ratings
(2022) EKHS42 20221Department of Economic History
- Abstract
- This study investigates the relationship between tax avoidance and corporate responsibility
measured through ESG ratings among Swiss listed companies between 2010 and 2019. In the
first part of the analysis, the aim is to identify whether Swiss firms provide evidence for the
corporate culture theory, which considers that tax payments and CSR/ESG activities are
complements, or for the risk management theory, according to which tax payments and
CSR/ESG activities act as substitutes. The second part of the analysis focuses on the role of
profitability and tries to identify whether the relationship between tax avoidance and corporate
responsibility changes with varying levels of firm performance.
The obtained results show that Swiss... (More) - This study investigates the relationship between tax avoidance and corporate responsibility
measured through ESG ratings among Swiss listed companies between 2010 and 2019. In the
first part of the analysis, the aim is to identify whether Swiss firms provide evidence for the
corporate culture theory, which considers that tax payments and CSR/ESG activities are
complements, or for the risk management theory, according to which tax payments and
CSR/ESG activities act as substitutes. The second part of the analysis focuses on the role of
profitability and tries to identify whether the relationship between tax avoidance and corporate
responsibility changes with varying levels of firm performance.
The obtained results show that Swiss companies who disclose ESG data in the analysed time
period provide evidence for the risk management theory, where an increased ESG rating is, on
average, associated with higher levels of tax avoidance. While this result is strongest for firms
below a certain profitability threshold, the relationship weakens with increasing profitability,
confirming the results of previous studies. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9096211
- author
- Furrer, Rebeka Angelika LU
- supervisor
-
- Åsa Hansson LU
- organization
- course
- EKHS42 20221
- year
- 2022
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Tax avoidance, Corporate responsibility, ESG ratings, Effective tax rate, Swiss listed companies, Firm profitability
- language
- English
- id
- 9096211
- date added to LUP
- 2022-08-16 10:57:29
- date last changed
- 2022-08-22 11:37:43
@misc{9096211, abstract = {{This study investigates the relationship between tax avoidance and corporate responsibility measured through ESG ratings among Swiss listed companies between 2010 and 2019. In the first part of the analysis, the aim is to identify whether Swiss firms provide evidence for the corporate culture theory, which considers that tax payments and CSR/ESG activities are complements, or for the risk management theory, according to which tax payments and CSR/ESG activities act as substitutes. The second part of the analysis focuses on the role of profitability and tries to identify whether the relationship between tax avoidance and corporate responsibility changes with varying levels of firm performance. The obtained results show that Swiss companies who disclose ESG data in the analysed time period provide evidence for the risk management theory, where an increased ESG rating is, on average, associated with higher levels of tax avoidance. While this result is strongest for firms below a certain profitability threshold, the relationship weakens with increasing profitability, confirming the results of previous studies.}}, author = {{Furrer, Rebeka Angelika}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Relationship between Tax Avoidance and ESG Ratings}}, year = {{2022}}, }