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- Title
EFEITOS DA REPUTAÇÃO CORPORATIVA NA TAX AVOIDANCE DE EMPRESAS BRASILEIRAS DE CAPITAL ABERTO.
- Authors
Dantas de França, Robério; Aguiar do Monte, Paulo
- Abstract
The objective of the study is to analyze the effect of corporate reputation on the tax avoidance of Brazilian publicly held companies. The subject is little explored in the area of accounting and taxes, and in Brazil no study was found that relates directly to corporate reputation with tax avoidance, which guarantees the pioneering of the study. In order to achieve this goal, it uses panel data regressions (FE-LSDV, RE and GMM estimators) which tests the hypothesis of relationship between corporate reputation and tax avoidance. It uses the Effective Tax Rate (ETR) and the Differential ETR as a tax avoidance proxy. The corporate reputation is measured through five proxies: (i) presence of the firm in the ranking of the best and largest companies in Brazil of the Exame magazine; (ii) Standard & Poor's ratings; (iii) Corporate Responsibility Index (ISE); (iv) coverage of market analysts; (v) Corporate Reputation Index - IRC, built in order to capture established reputation. The research sample comprises 225 Brazilian publicly held companies, totaling 1,575 observations/year in the period 2010 to 2016. In general, the results partially confirm the hypothesis adopted, since that not all reputation proxies have proved to be efficient. However, they indicate the propensity of companies with a strong reputation to increase tax avoidance. A possible explanation for the findings is that these companies ignore possible factors of fiscal risk and damage to reputation, suggesting the existence of moral licensing in the context of these companies.
- Subjects
BRAZIL; CORPORATE image; STANDARD &; Poor's Financial Services LLC; PUBLIC companies; SOCIAL responsibility of business; CORPORATE taxes; TAX rates; PANEL analysis; FINANCE
- Publication
Revista Universo Contábil, 2019, Vol 15, Issue 4, p109
- ISSN
1809-3337
- Publication type
Article
- DOI
10.4270/ruc.2019430