The Association between Tax Aggressiveness and Environmental Protection in Chinese Public Firms

Accounting & Taxation, v. 13 (1) p. 31-43

13 Pages Posted: 11 Aug 2021

See all articles by Shuoheng Niu

Shuoheng Niu

Jinan University

Hong Fan

Saint Mary's University, Canada

Liqiang Chen

Saint Mary's University, Canada - Department of Finance, Information Systems & Management Science

Qi Liu

affiliation not provided to SSRN

Date Written: 2021

Abstract

This study was motivated by a lack of understanding about whether firms trade off different components of corporate social responsibility (CSR) because CSR activities may compete with each other for investments. By investigating all public Chinese firms from 2010 to 2017, we found that firms exhibiting lower degrees of tax aggressiveness participated more in environmental protection activities. Our results suggest that good firms tend to perform well in different aspects of CSR. Additionally, we found that the relationship between tax aggressiveness and environmental protection activities is more pronounced in firms with politically connected management or board members, firms with a higher percentage of independent directors, and firms receiving fewer government bursaries.

Keywords: Tax Aggressiveness, Environmental Protection, Corporate Social Responsibility, China

JEL Classification: M4, H2

Suggested Citation

Niu, Shuoheng and Fan, Hong and Chen, Liqiang and Liu, Qi, The Association between Tax Aggressiveness and Environmental Protection in Chinese Public Firms (2021). Accounting & Taxation, v. 13 (1) p. 31-43, Available at SSRN: https://ssrn.com/abstract=3902113

Shuoheng Niu (Contact Author)

Jinan University ( email )

Huang Pu Da Dao Xi 601, Tian He District
Guangzhou, Guangdong 510632
China

Hong Fan

Saint Mary's University, Canada ( email )

923 Robie Street
Halifax, Nova Scotia B3H 3C3
Canada

Liqiang Chen

Saint Mary's University, Canada - Department of Finance, Information Systems & Management Science ( email )

Halifax, Nova Scotia B3H 3C3
Canada

Qi Liu

affiliation not provided to SSRN

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