New Findings from South China University of Technology in the Area of Sustainability Research Published (Does CSR Action Provide Insurance-Like Protection to Tax-Avoiding Firms? Evidence from China)

2019 OCT 11 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators publish new report on sustainability research. According to news reporting out of Guangzhou, People’s Republic of China, by NewsRx editors, research stated, “Based on a risk management perspective on corporate social responsibility (CSR), this study examines whether firms engaging in tax avoidance can benefit from CSR.”

Funders for this research include National Nature Science Foundation of China.

Our news editors obtained a quote from the research from South China University of Technology: “We posit that CSR engagement can provide insurance-like protection for firm value by reducing the reputation risk of tax avoidance. Moreover, the extent to which CSR functions as insurance is largely dependent on a firm’s communication strategy. In this study, a fixed-effect panel regression model is applied to examine the moderating effect of CSR engagement and greenwashing on the relationship between tax avoidance and firm value for listed Chinese firms. We find that a greenwashing strategy, i.e., a CSR communication strategy with aggressive symbolic actions and little to no substantive actions, generates negative capital and leads to a negative impact of tax avoidance on firm value. The findings are robust when considering deferred tax expenses and conducting a subgroup analysis. These findings advance our understanding of the relationship between tax avoidance, CSR and financial performance.”

According to the news editors, the research concluded: “They also help corporate executives select an effective CSR strategy for risk management purposes.”

For more information on this research see: Does CSR Action Provide Insurance-Like Protection to Tax-Avoiding Firms? Evidence from China. Sustainability, 2019,11(19):5297. (Sustainability - http://www.mdpi.com/journal/sustainability). The publisher for Sustainability is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/su11195297.

Our news journalists report that additional information may be obtained by contacting Wei Li, School of Business Administration, South China University of Technology, Guangzhou 510641, People’s Republic of China. Additional authors for this research include Yuan Lu, Weining Li. Our reports deliver fact-based news of research and discoveries from around the world.