IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vxiiy2024i1p41-59.html
   My bibliography  Save this article

Integrating Reporting Bridge, the Gap Between CSR Performance and Tax Avoidance Relationship? Insights from South Africa

Author

Listed:
  • Karima Lajnef
  • Kawther Dhifi

Abstract

Purpose: This research investigates the potential role of integrated reporting (IR) in bridging the relationship between Corporate Social Responsibility (CSR) performance and tax avoidance within the context of South African companies. This research contributes to the existing literature by exploring the role of integrated reporting in influencing the relationship between CSR performance and tax avoidance, particularly within the specific context of South Africa. Design/Methodology/Approach: Using a quantitative research approach as delineated by Preacher and Hayes (2008), this study analyses data collected from 107 companies operating in South Africa over the period spanning from 2010 to 2022. Findings: The analysis presents valuable insights into the relationship between CSR performance, tax avoidance, and the mediating effect of integrated reporting. Results shed light on the significant and potential connections among these variables, offering a nuanced understanding of their interplay. Practical Implications: This research contributes to the existing literature by exploring the role of integrated reporting in influencing the relationship between CSR performance and tax avoidance, particularly within the specific context of South Africa. Originality/Value: The study's findings provide valuable insights for academics, practitioners, and policymakers interested in understanding the interrelation among CSR initiatives, tax strategies, and integrated reporting practices.

Suggested Citation

  • Karima Lajnef & Kawther Dhifi, 2024. "Integrating Reporting Bridge, the Gap Between CSR Performance and Tax Avoidance Relationship? Insights from South Africa," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 41-59.
    • Handle: RePEc:ers:ijebaa:v:xii:y:2024:i:1:p:41-59
    as

    Download full text from publisher

    File URL: https://ijeba.com/journal/832/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mohd Shukor Harun & Khaled Hussainey & Khairul Ayuni Mohd Kharuddin & Omar Al Farooque, 2020. "CSR Disclosure, Corporate Governance and Firm Value: a study on GCC Islamic Banks," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 28(4), pages 607-638, May.
    2. Peter J. Baldacchino & Amy Camilleri & Brandon Schembri & Simon Grima & Yannis E. Thalassinos, 2020. "Performance Evaluation of the Board of Directors in Listed Companies: A Small State Perspective," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(1), pages 99-119.
    3. Sebastian Beer & Ruud de Mooij & Li Liu, 2020. "International Corporate Tax Avoidance: A Review Of The Channels, Magnitudes, And Blind Spots," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 660-688, July.
    4. Pakamas Srichoke & Georgios Georgakopoulos & Alexandros Sikalidis & Athina Sotiropoulou, 2021. "Corporate Governance, CEO Compensation and accounting conservatism," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 14(1), pages 80-95, June.
    5. Anis Jarboui & Maali Kachouri Ben Saad & Rakia Riguen, 2020. "Tax avoidance: do board gender diversity and sustainability performance make a difference?," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 27(4), pages 1389-1408, February.
    6. Shakeel Ahmed & M. Ejaz Majeed & Eleftherios Thalassinos & Yannis Thalassinos, 2021. "The Impact of Bank Specific and Macro-Economic Factors on Non-Performing Loans in the Banking Sector: Evidence from an Emerging Economy," JRFM, MDPI, vol. 14(5), pages 1-14, May.
    7. Carol A. Adams, 2002. "Internal organisational factors influencing corporate social and ethical reporting," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 15(2), pages 223-250, May.
    8. Haijing Liu & Hyun-Ah Lee, 2019. "The effect of corporate social responsibility on earnings management and tax avoidance in Chinese listed companies," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 27(4), pages 632-652, October.
    9. John Dumay & Cristiana Bernardi & James Guthrie & Paola Demartini, 2016. "Integrated reporting: A structured literature review," Accounting Forum, Taylor & Francis Journals, vol. 40(3), pages 166-185, September.
    10. Yingkai Tang & Yao Liu & Jing Liu & Weiping Li, 2019. "Does More Managerial Power Impede or Promote Corporate Tax Avoidance? Evidence from Listed Chinese Companies," Sustainability, MDPI, vol. 11(7), pages 1-18, March.
    11. Huseynov, Fariz & Klamm, Bonnie K., 2012. "Tax avoidance, tax management and corporate social responsibility," Journal of Corporate Finance, Elsevier, vol. 18(4), pages 804-827.
    12. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
    13. Augustine Donkor & Hadrian Geri Djajadikerta & Saiyidi Mat Roni & Terri Trireksani, 2022. "Integrated reporting quality and corporate tax avoidance practices in South Africa’s listed companies," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 13(4), pages 899-928, January.
    14. Edward Freeman, R. & Phillips, Robert A., 2002. "Stakeholder Theory: A Libertarian Defense," Business Ethics Quarterly, Cambridge University Press, vol. 12(3), pages 331-349, July.
    15. Jensen, Michael C & Meckling, William H, 1979. "Rights and Production Functions: An Application to Labor-managed Firms and Codetermination," The Journal of Business, University of Chicago Press, vol. 52(4), pages 469-506, October.
    16. T. Suryanto & J.E. Thalassinos & E.I. Thalassinos, 2017. "Board Characteristics, Audit Committee and Audit Quality: The Case of Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 44-57.
    17. Timo Busch & Gunnar Friede, 2018. "The Robustness of the Corporate Social and Financial Performance Relation: A Second‐Order Meta‐Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 583-608, July.
    18. D. Balios & I. Basiakos & N. Eriotis & P. Kotsilaras & E. Thalassinos, 2021. "Factors Affecting the Quality of Financial Reporting after the Adoption of the New Greek Accounting Standards," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(3), pages 3-26.
    19. Hanlon, Michelle & Heitzman, Shane, 2010. "A review of tax research," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 127-178, December.
    20. Issam Laguir & Raffaele Staglianò & Jamal Elbaz, 2015. "Does corporate social responsibility affect corporate tax aggressiveness?," Post-Print hal-02053812, HAL.
    21. Roman Lanis & Grant Richardson, 2015. "Is Corporate Social Responsibility Performance Associated with Tax Avoidance?," Journal of Business Ethics, Springer, vol. 127(2), pages 439-457, March.
    22. Archie B. Carroll, 2016. "Carroll’s pyramid of CSR: taking another look," International Journal of Corporate Social Responsibility, Springer, vol. 1(1), pages 1-8, December.
    23. Phuong Lien Thi Hoang & Dong Xuan Pham & Eleftherios I. Thalassinos & Hoang Anh Le, 2022. "The Impact of Corporate Governance Mechanism, Company Characteristics on the Timeliness of Financial Statements: Evidence from Listed Companies in Vietnam," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, March.
    24. Laura Sierra‐García & Ana Zorio‐Grima & María A. García‐Benau, 2015. "Stakeholder Engagement, Corporate Social Responsibility and Integrated Reporting: An Exploratory Study," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(5), pages 286-304, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patrizia Gazzola & Audrey Paterson & Stefano Amelio & Daniele Grechi & Stefano Cristina, 2023. "The role of individual social responsibility and corporate social responsibility in the tax fraud war: A comparison between the priorities of Italian and Romanian consumers," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2265-2277, September.
    2. Ahmed A. Sarhan, 2024. "Corporate social responsibility and tax avoidance: the effect of shareholding structure—evidence from the UK," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 1-15, March.
    3. Alfred Tran & Wanmeng Xu, 2024. "A study of cross‐border profit shifting channels: Evidence from Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(1), pages 869-901, March.
    4. Abdelfattah, Tarek & Aboud, Ahmed, 2020. "Tax avoidance, corporate governance, and corporate social responsibility: The case of the Egyptian capital market," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 38(C).
    5. Fallan, Even & Fallan, Lars, 2019. "Corporate tax behaviour and environmental disclosure: Strategic trade-offs across elements of CSR?," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    6. Sarhan, Ahmed A. & Elmagrhi, Mohamed H. & Elkhashen, Emad M., 2024. "Corruption prevention practices and tax avoidance: The moderating effect of corporate board characteristics," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 55(C).
    7. Mohammed Benlemlih & Jamil Jaballah & Sholom Schochet & Jonathan Peillex, 2023. "Corporate social responsibility and corporate tax avoidance: The channel effect of consumer awareness," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 50(1-2), pages 31-60, January.
    8. García-Meca, Emma & Ramón-Llorens, Maria-Camino & Martínez-Ferrero, Jennifer, 2021. "Are narcissistic CEOs more tax aggressive? The moderating role of internal audit committees," Journal of Business Research, Elsevier, vol. 129(C), pages 223-235.
    9. Gavious, Ilanit & Livne, Gilad & Chen, Ester, 2022. "Does tax avoidance increase or decrease when tax enforcement is stronger? Evidence using CSR heterogeneity perspective," International Review of Financial Analysis, Elsevier, vol. 84(C).
    10. Nirmala Devi Mohanadas, 2019. "A Theoretical Review on Corporate Tax Avoidance: Shareholder Approach versus Stakeholder Approach," GATR Journals jfbr160, Global Academy of Training and Research (GATR) Enterprise.
    11. Beuselinck, Christof & Karavitis, Panagiotis & Kazakis, Pantelis & Mouna, Niswatil, 2024. "E-government and corporate tax planning: International evidence," MPRA Paper 122742, University Library of Munich, Germany.
    12. Osman Issah & Lúcia Lima Rodrigues, 2021. "Corporate Social Responsibility and Corporate Tax Aggressiveness: A Scientometric Analysis of the Existing Literature to Map the Future," Sustainability, MDPI, vol. 13(11), pages 1-23, June.
    13. Laszlo Goerke, 2019. "Corporate social responsibility and tax avoidance," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(2), pages 310-331, April.
    14. Hongfeng Sun & Meng Yang & Lidan Li & Chang Liu, 2023. "Corporate Charitable Donations, Earnings Performance and Tax Avoidance," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    15. Tânia Menezes Montenegro, 2021. "Tax Evasion, Corporate Social Responsibility and National Governance: A Country-Level Study," Sustainability, MDPI, vol. 13(20), pages 1-19, October.
    16. Christofer Adrian & Mukesh Garg & Anh Viet Pham & Soon-Yeow Phang & Cameron Truong, 2023. "Do Natural Disasters Affect Corporate Tax Avoidance? The Case of Drought," Journal of Business Ethics, Springer, vol. 186(1), pages 105-135, August.
    17. Francesco Scarpa & Silvana Signori, 2023. "Understanding corporate tax responsibility: a systematic literature review," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 14(7), pages 179-201, June.
    18. Lisa Baudot & Joseph A. Johnson & Anna Roberts & Robin W. Roberts, 2020. "Is Corporate Tax Aggressiveness a Reputation Threat? Corporate Accountability, Corporate Social Responsibility, and Corporate Tax Behavior," Journal of Business Ethics, Springer, vol. 163(2), pages 197-215, May.
    19. Feng, Zhi-Yuan & Wang, Ying-Chieh & Wang, Wen-Gine, 2024. "Corporate carbon reduction and tax avoidance: International evidence," Journal of Contemporary Accounting and Economics, Elsevier, vol. 20(2).
    20. Danny Zhao‐Xiang Huang, 2022. "An integrated theory of the firm approach to environmental, social and governance performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1567-1598, April.

    More about this item

    Keywords

    Corporate social responsibility (CSR); integrated reporting (IR); tax avoidance; South Africa; Preacher and Hayes model.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:xii:y:2024:i:1:p:41-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.