Responsible governance and tax avoidance: do CSR, business ethics and green innovation matter? Evidence from international ESG data
Abir Mlaiki et al.
What the paper says
Purpose This study aims to examine the effect of responsible governance on tax avoidance and the moderating effect of corporate social responsibility (CSR), business ethics and green innovation on this relationship. Design/methodology/approach The authors relied on a sample of 475 ESG index companies from 2013 to 2022, using the feasible generalized least squares (FGLS) method. To test robustness, the authors included an alternative measure of tax avoidance, applied the generalized method of moments (GMM) to address endogeneity, and accounted for the specific impact of the COVID-19 pandemic. Findings The results demonstrate that responsible governance significantly reduces tax avoidance. Furthermore, CSR, business ethics and green innovation reinforce this effect, confirming their moderating role. Practical implications The study provides practical advice to managers and policymakers on integrating governance, CSR, business ethics and green innovation to combat tax avoidance. Originality/value This study sheds light on the impact of responsible governance on corporate tax avoidance by highlighting the moderating role of CSR and business ethics and green innovation. Although these factors are interrelated, they capture distinct dimensions of corporate responsibility, offering a more comprehensive understanding of governance mechanisms. It also makes a unique contribution by showing that green innovation strengthens this link, which has not been previously studied.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.