Katrin Hummel

Sustainability Performance and Tax Avoidance Disentangling the Effects of Operational and Management Sustainability Performance

This paper provides an explanation for the previously mixed findings on the relationship between corporate sustainability performance (CSP) and corporate tax avoidance by disentangling sustainability performance into operational and management sustainability performance. The results from multivariate regression analyses for a sample of 4,449 U.S. firm-year observations reveal a positive relationship between management sustainability performance and tax avoidance and a negative relationship between operational sustainability performance and tax avoidance. The results are robust across the environmental and social dimensions of sustainability and various measures of tax avoidance. Overall, the study provides novel insights into the association between CSP and corporate tax avoidance.

Can The Integration of a Tax Compliant Transfer Pricing System Into the Management Control System Be Successful? Yes, It Can!

This paper shifts the approach of transfer pricing research from a traditional transaction-based focus to a focus on the overall transfer pricing system. More precisely, we investigate the relationship between the integration of the transfer pricing system into the management control system, an enabling use of the transfer pricing system and the success of the transfer pricing system. Results from structural equation modeling using the partial least squares technique indicate that the level of transfer pricing system integration is significantly related to its success. This relationship is mediated through an enabling use of the transfer pricing system as indicated by the variables repair and internal transparency. Therefore, based on our results, we recommend strong integration of the transfer pricing system into the management control system. However, the users of highly integrated transfer pricing systems need to be able to truly understand the transfer pricing system and to be able to initiate revisions to it in the event of fundamental problems.

Earnings Management -- Does Corporate Sustainability Performance Matter?

This study investigates the relationship between corporate sustainability performance and earnings management practices in a European setting. We measure earnings management based on discretionary accruals (cash flow approach) and real activity management. Corporate sustainability performance is a multi-dimensional construct that is measured based on data provided by the CSRHub database. Employing a European sample of 1,426 firm-year observations, our results reveal a negative relationship between corporate sustainability performance and earnings management activities. This finding supports the notion that a broad and integrated approach of sustainability performance constrains the use of earnings management practices. The results are consistent with recent research on U.S. non-financial companies (Kim et al. 2012), indicating the application of similar principles in U.S. and European settings. Additional analyses reveal that this relationship is particularly applicable to the environmental and community dimensions of sustainability, whereas we find only limited empirical evidence on this relationship for the employee dimension. Taken together, our study provides further evidence regarding the relevance of corporate sustainability in the financial context.

Zusammenhang zwischen Nachhaltigkeitsperformance und Nachhaltigkeitsberichterstattung – Legitimität oder finanzielle Überlegungen?

Both theoretical considerations as well as empirical findings report mixed results on the relationship between sustainability disclosure and sustainability performance. Theoretical considerations are mainly based on legitimacy theory and voluntary disclosure theory. Due to shortcomings of previous studies with regard to the measurement of the main variables, our paper concentrates on new measurement approaches for sustainability disclosure and sustainability performance. Findings from a sample of 50 German and Swiss companies support our methodological approach. In particular, we find empirical evidence that legitimacy theory and voluntary disclosure theory likewise can explain certain aspects of sustainability reporting.

Internationaler Vergleich der Nachhaltigkeitsberichterstattung

Weltweit treten das Konzept des nachhaltigen Wirtschaftens und damitauch die Nachhaltigkeitsberichterstattung immer starker in den Blick-punkt der offentlichen Wahrnehmung. Im Rahmen der vorliegenden Stu-die werden der Status Quo der Nachhaltigkeitsberichterstattung von Un-ternehmen ausgewahlter Indizes erhoben sowie grosen-, branchen- undlanderspezifische Vergleiche vorgenommen.