Date of Award
Spring 2018
Degree Name
Bachelor of Science (BS)
Advisor(s)
Danielle Green
Abstract
This study investigates the relationship between corporate social responsibility (CSR) and tax avoidance, examining how this association is influenced by a firm's business strategy. By differentiating between firms with a Prospector strategy, which tends to take more risks, and those with a Defender strategy, known for risk aversion, the research aims to understand the motivational theories behind CSR—whether it's part of the corporate culture or used for risk mitigation. Utilizing archival data from 1995 to 2013, the study employs a multiple linear regression analysis to test the hypotheses that the CSR-tax avoidance relationship is positive for Prospectors and negative for Defenders. However, the findings do not support these hypotheses, indicating no statistically significant effect of business strategy on the CSR-tax avoidance relationship. This result suggests that the mixed evidence found in previous studies cannot be solely explained by the underlying motivations for CSR practices. The research contributes to the ongoing debate on CSR's role in corporate strategy and tax avoidance, highlighting the need for further exploration into other factors that might influence this complex relationship.
Recommended Citation
Gilmartin, Brittany, "The Effect of Business Strategy on the CSR-Tax Avoidance Relationship" (2018). Gabelli School of Business Honors Thesis Collection. 114.
https://research.library.fordham.edu/gabelli_thesis/114
