Abstract

http://ssrn.com/abstract=2170508
 


 



Corporate Social Responsibility and Cost of Equity: Evidence from Corporate Tax Disputes


Mingjun Zhou


DePaul University

November 2, 2012

Journal of Accounting, Ethics & Public Policy, Volume 13, No. 3 (2012)

Abstract:     
This study examines the relation between social concerns on firms' tax positions and their cost of equity. Corporate social performance can influence capital market processes but little empirical evidence has been presented yet in terms of the effects of tax disputes on shareholder preference. I contribute by showing that tax concerns expressed by a social monitoring index are associated with a higher implied cost of equity capital. In other words, firms may lower their cost of equity capital and contribute to the community by acting as non-aggressive taxpayers.

Number of Pages in PDF File: 18

Keywords: cost of equity, tax disputes, corporate social responsibility

JEL Classification: H25, G30

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Date posted: November 3, 2012  

Suggested Citation

Zhou, Mingjun, Corporate Social Responsibility and Cost of Equity: Evidence from Corporate Tax Disputes (November 2, 2012). Journal of Accounting, Ethics & Public Policy, Volume 13, No. 3 (2012). Available at SSRN: http://ssrn.com/abstract=2170508

Contact Information

Mingjun Zhou (Contact Author)
DePaul University ( email )
1 East Jackson Blvd.
Chicago, IL 60604
United States
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