Firm's tax aggressiveness under mandatory CSR regime: Evidence after mandatory CSR regulation of India

Abstract

AbstractIn this study, we use the mandatory CSR spending regulation implemented by India in 2015 to examine whether firms that comply with the regulation change their tax aggressiveness. We document that firms that comply with CSR regulation end up having less tax aggression which supports the argument that enhanced visibility and firm‐level reputational concerns play a vital role in shaping up the relationship between CSR and taxation policy. Our results are consistent with the number of robustness checks.