Consumer reactions to corporate tax strategies: the role of political ideology

Antonetti, Paolo and Anesa, Mattia (2017) Consumer reactions to corporate tax strategies: the role of political ideology. Journal of Business Research, 74 1-10. doi:10.1016/j.jbusres.2016.12.011


Author Antonetti, Paolo
Anesa, Mattia
Title Consumer reactions to corporate tax strategies: the role of political ideology
Journal name Journal of Business Research   Check publisher's open access policy
ISSN 0148-2963
1873-7978
Publication date 2017-05-01
Sub-type Article (original research)
DOI 10.1016/j.jbusres.2016.12.011
Open Access Status Not yet assessed
Volume 74
Start page 1
End page 10
Total pages 10
Place of publication New York, NY, United States
Publisher Elsevier
Collection year 2018
Language eng
Abstract This study contributes to research on how stakeholders react to corporate tax strategies (CTSs). In two experiments we show that consumers are more likely to react negatively to ‘aggressive’ rather than to reward ‘conservative’ CTSs. The impact of CTSs on consumer reactions is mediated by the perceived ethicality of the firm and moderated by individuals’ political identification. Right-leaning consumers are less likely than left-leaning consumers to punish companies engaging in tax avoidance. This moderation depends on the personal connection customers have with a particular brand: both left-leaning and right-leaning consumers punish firms they feel close to when such firms engage in aggressive CTSs. The study extends our understanding of the benefits and risks associated with different CTSs. It contributes to debates on the morality of CTSs, showing that political ideology shapes individuals’ perceived ethicality of corporations engaged in aggressive tax avoidance.
Keyword Corporate reputation
Corporate social irresponsibility
Corporate social responsibility
Corporate tax avoidance
Moral foundations theory
Political ideology
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
UQ Business School Publications
 
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