A BIBLIOMETRIC ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY AND TAX AVOIDANCE

This study covers the linkage between corporate social responsibility and tax avoidance. We perform a bibliometric analysis and check the findings with regard to corporate social responsibility and tax avoidance. We take 153 articles from reputable international journals from Scopus, Science Direct, Web of Science, and Wiley Online Journals (from 2008 until 2023) on the linkage between corporate social responsibility and tax avoidance. The linkage between corporate social responsibility and tax avoidance remains unclear, both in terms of empirical evidence and theoretical understanding. Besides this, most of the studies found a negative linkage between corporate social responsibility and tax avoidance. The comparability of recent studies on this matter is particularly restricted due to the usage of diverse metrics for corporate social responsibility (CSR) and tax avoidance, along with the potential bidirectional relationship between these factors. Several academic theories, including stakeholder and legitimacy theories, also explain the relationship between corporate social responsibility and tax avoidance. The findings of the study suggest that there is not always a correlation between a company's tax policies and its corporate social responsibility success as measured by corporate social responsibility scores or ratings. Consequently, socially responsible investors face a crucial decision regarding whether they are ready to make investments in companies with excellent CSR ratings or commendable CSR shows, even if these companies aggressively minimize their tax obligations. Investors who view taxation as an aspect of a company's social responsibility must exercise caution when selecting their investments since CSR rating and CSR discourse provide specific insights into a company's tax avoidance practices. The flow of articles on this topic has increased in the last four years. Future directions involve the extension of the study period, including more countries, expanding the sample to both listed and non-listed companies and exploring the major sectors. Meta-analysis could be a valuable approach to enhance the effectiveness of future studies in this field.