Corporate Social Responsibility, Tax Aggressiveness, and Firm Market Value
Why this work is in the frame
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Bibliographic record
Abstract
This paper examines the relationship of corporate social responsibility (CSR), tax aggressiveness, and firm market value. An economic model has been developed to show that profit-maximization firms are willing to incur additional costs in CSR, such as paying more taxes, as long as they can differentiate their products from non-CSR firms, and that socially conscious consumers will buy products from CSR firms at prices higher than those of non-CSR firms. The empirical study in this paper indicates that the higher the CSR ranking of a firm, the less likely a firm is to engage in tax aggressiveness. It also indicates that a reputation of higher CSR will enhance firm market value. Using Canadian companies listed in the S&P/TSX 60 index, I find that both firms’ five-year effective tax rates and annual effective tax rates are positively associated with their overall CSR scores as well as with their social scores. Firms’ five-year effective tax rates are also positively associated with their governance index. I also find that firms’ overall CSR ranking and governance scores are positively associated with their market value. L'auteur examine la relation entre la responsabilité sociale de l'entreprise (RSE), l'audace de ses positions fiscales et sa valeur de marché. Il élabore un modèle économique montrant que les entreprises qui cherchent à maximiser leurs profits sont disposées à engager des coûts additionnels liés à la RSE, notamment à payer davantage d'impôts, dans la mesure où elles pourront ainsi différencier leurs produits de ceux des entreprises qui ne se soucient pas de la RSE, et que les consommateurs qui attachent de l'importance à la RSE accepteront d'acheter les produits des entreprises qui sont socialement responsables à des prix supérieurs à ceux des entreprises qui ne le sont pas. L’étude empirique de l'auteur révèle que plus le classement d'une entreprise est élevé en ce qui a trait à la responsabilité sociale, moins cette dernière est susceptible d'user d'audace dans ses positions fiscales. Elle révèle également qu'une bonne réputation en matière de responsabilité sociale accroît la valeur de marché de l'entreprise. L’étude des sociétés canadiennes de l'indice S&P/TSX 60 permet de constater que les taux d'imposition effectifs des entreprises sur une période cinq ans, de même que leurs taux d'imposition effectifs annuels, sont en relation positive avec leur cote globale en matière de RSE et leur cote au chapitre du comportement social. Leurs taux d'imposition effectifs quinquennaux sont aussi en relation positive avec leur indice de gouvernance. L'auteur observe également que le classement global des entreprises en matière de RSE et leur cote au chapitre de la gouvernance sont en relation positive avec leur valeur de marché.
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Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.001 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.001 | 0.000 |
| Scholarly communication | 0.000 | 0.002 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.001 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it