기업의 사회적 책임활동에 따른 조세전략 및 현금보유, 기업가치

This paper provides the effects of corporate social responsibility(hereafter "CSR") activities on the tax avoidance, cash holdings and the market reaction. I measure corporate social responsibility using the KEJI index, which is the most frequently used database in extant CSR research. I measure corporate tax avoidance using the book-tax differences not attributable to total accruals(Desai and Dharmapala, 2006). The sample contains 538 firm-years listed in Korean stock market between 2005 and 2008. Summarizing the results of analysis as following;First, I find that socially responsible firms, which potentially have more non-tax cost, avoid less tax relative to socially irresponsible firms. Also when firms engage in tax avoidance activities, the stock market reacts unfavorably. However, CSR mitigates this negative effect of tax avoidance on the firm value. This study would provide the opportunity to lay emphasis on corporate governance importance and implementation for corporate social responsibility and sustainable corporate development. Also, these findings while subject to the limitations inherent in the use of specific corporate social responsibility measures, provide mixed support for the business case for corporate social responsibility.