What is it about?
Using sample data on U.S. public firms during years 2000-2013, we examine the effects of tax avoidance and Corporate Social Responsibility (CSR) activities on equity market valuation. There is a mainstream argument that managers should avoid taxes through any legal means and that CSR activities are of value only to the extent that shareholder wealth is maximized. Our analysis provides evidence that, while equity market participants may positively value both CSR and tax avoidance, these two actions are viewed as inconsistent with one another when engaged upon contemporaneously.
The following have contributed to this page: Kerry Inger
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