Legitimacy Judgments about Corporate Tax Avoidance: A Deliberation Experiment

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Ressource 1Download: Schnider Haack and Scherer 2018 Proceedings.pdf (169.02 [Ko])
State: Public
Version: Author's accepted manuscript
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Serval ID
serval:BIB_F9D2D9F18770
Type
Inproceedings: an article in a conference proceedings.
Collection
Publications
Institution
Title
Legitimacy Judgments about Corporate Tax Avoidance: A Deliberation Experiment
Title of the conference
Academy of Management Proceedings
Author(s)
Schnider R., Haack P., Scherer A.G.
Publisher
Academy of Management
Address
Chicago, USA
ISSN
0065-0668
2151-6561
Publication state
Published
Issued date
07/2018
Peer-reviewed
Oui
Volume
2018
Number
1
Pages
1-6
Language
english
Abstract
Previous research has suggested that business firms need to engage in active dialogues with stakeholders to maintain their legitimacy. We investigate this “legitimation-as-deliberation” thesis in the context of global tax avoidance and explore whether and under what conditions deliberation leads to the legitimation or delegitimation of tax avoidance and the consultancies involved in facilitating tax avoidance. By conducting an experiment in which study participants discussed the issue of global tax avoidance with representatives of a tax accounting firm and/or representatives of an NGO critical of tax avoidance, we demonstrate that entering deliberations can indeed serve as legitimation strategy for firms. However, the direction and size of the effect depend on the relative persuasiveness of the representatives’ arguments. Moreover, representatives of the tax accounting firm have a stronger impact on participants’ legitimacy judgments about their organization, whereas representatives of the NGO mainly affect participants’ legitimacy judgments regarding the practice. Our study provides three contributions to management research. Phenomenologically, it sheds light on tax avoidance as an important but underexplored topic in management research. Methodologically, it develops an experimental design enabling causal inference about deliberative effects. Finally, theoretically, it conceptualizes legitimacy as a communicative process of making judgments.
Create date
14/08/2018 14:31
Last modification date
20/08/2019 17:25
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