Faculty of Business Administration


Hosted by The Business Research and Training Center


Corporate Taxes and Corporate Social Responsibility

Endong YANG

Assistant Professor in Finance

University of Macau


Date: 25 November 2020 (Wednesday)
Time: 15:00
Venue: E22-4020


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The paper examines the impact of corporate taxes on corporate social responsibility (CSR) by exploiting the staggered changes in corporate taxes across U.S. states as a quasi-natural experiment. Firms’ CSR performance significantly improves following tax cuts but do not react to tax increases, consistent with the rigidity of CSR. The effect of tax decrease on CSR is more pronounced for firms that are more affected by state-level tax changes,  financially more constrained firms, firms headquartered in more CSR-friendly states, firms held by more socially responsible institutional investors, in more competitive industries, or led by CEOs who are more long-term oriented. Overall, our findings shed light on how fiscal policies shape companies’ incentives to be socially responsible.



Endong Yang is an Assistant Professor of Department of Finance and Business Economics at the Faculty of Business Administration of University of Macau. He obtained his PhD at the Nanyang Business School of Nanyang Technological University. His research interests are corporate finance, corporate social responsibility, institutional investors, Chinese economy, and financial reporting.