Relationship Between CSR Rating and Tax Avoidance

摘要

This study has been done to find whether there is a significant relationship between corporate social responsibility rating and tax avoidance. Sample includes 79 companies based on availability of ratings data. Companies financial data was collected from Prowess for the year 2004 to 2017. CSR data was collected fromCSRHub. CSRHub is third party site where we can collect CSR ratings data. Regression analysis was used to analyze the significance between corporate social responsibility rating and tax avoidance. Our results suggest that companies with higher CSR ratings have lower involvement in tax avoidance practices.Companies that are showing higher commitment towards environment are more tax responsible.