Effect of tax incentives and corporate social responsibility of organizations
Abstract
Objective: This research aimed to investigate the effect of tax incentives on corporate social responsibility (CSR) practices of publicly traded Brazilian companies.
Method: For this, the method used was the application of panel data with fixed and random effects and quantile regression through the bootstrap technique, in information provided by organizations and ESG (environmental, social and governance) measures released by Thomson Reuters Eikon, in the period from 2016 to 2020.
Originality/Relevance: In this scenario, the relevance of the research is associated with the importance of socially responsible practices by companies and how this can suffer the effect of tax incentives, which work as an instrument to legitimize the granting of these benefits, adopting the government and society.
Results: Thus, the results show that tax incentives affect CSR, as entities present better ESG indicators. In addition, there is a positive relationship with ESG measures in the environmental dimension and, on the other hand, a negative relationship with the governance pillar, assuming that shareholders and investors, even if they observe the social responsibility of organizations, do not appear as agents that tend to legitimize such practices associated with tax incentives.
Theoretical/methodological/practical contributions: Therefore, the research contributes with a new parameter for the government to be able to evaluate the efficiency of granting these incentives and advances the discussions of determining factors for CSR, from the perspective of the theory of legitimacy.
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References
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