Purpose

This study aims to investigate the role of negative media coverage of environmental, social and governance (ESG) issues in deterring tax avoidance. Inspired by media agenda-setting theory and legitimacy theory, this study hypothesises that an increase in ESG negative media coverage should cause a reputational drawback, leading companies to reduce tax avoidance to regain their legitimacy. Hence, this study examines a novel channel that links ESG and taxation.

Design/methodology/approach

This study uses panel regression analysis to examine the relationship between negative media coverage of ESG issues and tax avoidance among the largest European entities. This study considers different measures of tax avoidance and negative media coverage.

Findings

The results show that negative media coverage of ESG issues is negatively associated with tax avoidance, suggesting that media can act as an external monitor for corporate taxation.

Practical implications

The findings have implications for policymakers and regulators, which should consider tax transparency when dealing with ESG disclosure requirements. Tax disclosure should be integrated into ESG reporting.

Social implications

The study has social implications related to the media, which act as watchdogs for firms’ irresponsible practices. According to this study’s findings, increased media pressure has the power to induce a better alignment between declared ESG policies and tax strategies.

Originality/value

This study contributes to the literature on the mechanisms that discourage tax avoidance and the literature on the relationship between ESG and taxation by shedding light on the role of media coverage.

中文翻译：

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媒体对 ESG 问题和企业避税的负面报道

目的

本研究旨在调查媒体对环境、社会和治理（ESG）问题的负面报道在阻止避税方面的作用。受媒体议程设定理论和合法性理论的启发，本研究假设 ESG 负面媒体报道的增加会导致声誉受损，导致企业减少避税以重新获得合法性。因此，本研究探讨了一种将 ESG 与税收联系起来的新渠道。

设计/方法论/途径

本研究使用面板回归分析来检验媒体对 ESG 问题的负面报道与欧洲最大实体避税之间的关系。本研究考虑了避税和负面媒体报道的不同措施。

发现

结果表明，媒体对 ESG 问题的负面报道与避税呈负相关，这表明媒体可以充当企业税收的外部监督者。

实际影响

研究结果对政策制定者和监管机构具有影响，他们在处理 ESG 披露要求时应考虑税收透明度。税务披露应纳入 ESG 报告。

社会影响

这项研究具有与媒体相关的社会影响，媒体充当着企业不负责任行为的监督者。根据这项研究的结果，增加的媒体压力有能力促使所宣布的 ESG 政策和税收策略更好地结合起来。

原创性/价值

本研究通过阐明媒体报道的作用，为有关阻止避税机制的文献以及有关 ESG 与税收之间关系的文献做出了贡献。