What are the tax lobbying results?

Asked on 24.11.2018 in All Questions.
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Through lobbying for reduced taxes, some firms argue they are engaging in good corporate citizenship. Davis et al.  test this theory by estimating Equation using a logistic regression model, with dependent variable Lobby (0/1), equal to 1 if the firm incurs expenditure on tax lobbying, and 0 otherwise. The results indicate a significant positive relation between tax lobbying and measures of CSR. The findings were deemed economically significant, as firms in the highest quantile of CSR_index have approximately 158% higher probability of lobbying for taxes than other firms. The same test was repeated using Lobby_exp, the amount spent by firms on tax lobbying activities scaled by lagged assets during the year. Davis et al.  found that firms in the highest quartile of CSR_Index spend approximately 1.3% more (of...
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