Analysis of the relationships between corporate reputation and tax avoidance of Brazilian companies

Authors

  • Isabela de Araujo Bernardo dos Santos Universidade Federal da Paraíba https://orcid.org/0000-0002-3818-332X

    Mestranda em Ciências Contábeis pela Universidade Federal do Rio Grande do Norte – UFRN
  • Robério Dantas de França Universidade Federal da Paraíba https://orcid.org/0000-0001-8204-7803

    Doutor em Ciências Contábeis pela Universidade de Brasília (Programa Multiinsticional e Inter-regional de Pós-graduação em Ciências Contábeis da UNB, UFPB e UFRN). Mestre em Ciências Contábeis pela Universidade de Brasília – UNB. Especialização em Contabilidade Decisorial pela Universidade Federal da Paraíba – UFPB. Graduação em Ciências Contábeis pela Universidade Federal da Paraíba – UFPB. Professor do Programa de Pós-Graduação em Ciências Contábeis – PPGCC da Universidade Federal da Paraíba – UFPB.
    roberiodantas@terra.com.br

DOI:

https://doi.org/10.18800/contabilidad.202202.005

Keywords:

Taxes on profit, Corporate reputation, Tax avoidance

Abstract

This article aims to analyze the relationship between corporate reputation and tax avoidance of Brazilian companies. Unlike previous research that observed reputational damage caused by tax reduction strategies deemed abusive or illegal, the purpose of this research is to analyze whether, once established, corporate reputation is likely to influence the level of tax avoidance of Brazilian companies. The research sample comprises a total of 180 publicly traded companies, totaling 1,800 observations in the period from 2010 to 2019. Panel data regression (fixed effect with FE-LSDV estimators and random effect - RE) was used to test the effects of corporate reputation on tax avoidance. The main results indicate that companies with a strong reputation are paying more taxes, on average, and are less aggressive in tax strategies. In addition, companies with a strong reputation have larger book-tax-differences (BTD).

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Published

2022-11-14

How to Cite

dos Santos, I. de A. B., & de França, R. D. (2022). Analysis of the relationships between corporate reputation and tax avoidance of Brazilian companies. Contabilidad Y Negocios, 17(34), 117–141. https://doi.org/10.18800/contabilidad.202202.005

Issue

Vol. 17 No. 34 (2022)

Section

Taxation

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.