Does Waste Recycling Affect Tax Avoidance? The Moderating Role of Executive Committee Gender Diversity

ABSTRACT We examine the relationship between waste recycling (WR) and corporate tax avoidance, with a focus on the moderating role of executive committee gender diversity. Using panel data comprising 13,815 firm‐year observations from 921 publicly listed firms across 10 countries between 2010 and 2024, we find that waste recycling is negatively associated with tax avoidance, consistent with legitimacy theory. Furthermore, our results reveal that executive committee gender diversity significantly moderates this relationship. Specifically, the negative association between waste recycling and tax avoidance becomes more pronounced when executive committee gender diversity is higher. An additional analysis of ESG performance suggests that firms with stronger sustainability profiles are less likely to combine environmental actions with aggressive tax outcomes. Overall, our findings highlight the joint influence of environmental practices, executive committee gender diversity, and ESG engagement in shaping responsible corporate tax behaviour, offering insights for policymakers and managers seeking to strengthen sustainable governance.