The moderating role of adopting SDGs on the effective tax rate: the case of Spanish SMEs

Paloma Merello Giménez; Desamparados Blázquez; Antonio Barberá Martí; Raúl Peña Ortiz

The moderating role of adopting SDGs on the effective tax rate: the case of Spanish SMEs

Paloma Merello ^[1] ; Amparo Blázquez-Soriano ^[2] ; Antonio Barbera ^[3] ; Raúl Peña- Ortiz ^[1]
1. [1] Universitat de València
  
  Universitat de València
  
  Valencia, España
2. [2] Universidad Politécnica de Valencia
  
  Universidad Politécnica de Valencia
  
  Valencia, España
3. [3] Generalitat Valenciana
  
  Generalitat Valenciana
  
  Valencia, España
Mostrar afiliaciones +
Localización: Revista española de financiación y contabilidad, ISSN 0210-2412, Vol. 55, Nº 1, 2026, págs. 118-142
Idioma: inglés
DOI: 10.1080/02102412.2025.2583747
Texto completo no disponible (Saber más ...)
Resumen
- Eurozone countries use tax policies as their main economic tool. In the post-COVID-19 context, Next-Generation EU funds supported tax rate adjustments and sustainable development through business practices related to the Sustainable Development Goals (SDGs). In Spain, small- and medium-sized enterprises (SMEs) comprise most of the country’s productive system. Given their relevant role in the economy, it is important to understand their behaviour in relation to SDGs and how their commitment to them impacts their effective tax rate (ETR). This paper provides evidence on Spanish SMEs regarding the significant relationship between their effective tax burden and their engagement with SDGs in the years between 2021 and 2023. The work contributes to the literature on the ETR as it considers new determinants (adopting SDGs, approached by their reporting), and aims to help regulators design company incentives and highlights to firms the benefits of sustainable practices and transparent SDG reporting.
Referencias bibliográficas
- Adhikari, A., Derashid, C., & Zhang, H. (2006). Public policy, political connections, and effective tax rates: Longitudinal evidence from...
- AEAT. (2025). Manual práctico de sociedades 2024. (In Spanish) https://sede.agenciatributaria.gob.es/static_files/Sede/Biblioteca/Manual/Practicos/Sociedades/Manual_Sociedades_2024.pdf
- Ali, S. M., Norhashim, M., & Jaffar, N. (2022). Tax incentive recipient firm characteristics and performance within Malaysian small and...
- Andreas, A., & Savitri, E. (2017). Determinants of effective tax rate of the top 45 largest listed companies of Indonesia. International...
- Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics,...
- Aureli, S., Magnaghi, E., & Salvatori, F. (2019). The role of existing regulation and discretion in harmonising non-financial disclosure....
- Awuah, B., Yazdifar, H., & Elbardan, H. (2024). Corporate reporting on the Sustainable Development Goals: A structured literature review...
- Bae, J., Hung, C. Y., & van Lent, L. (2023). Mobilizing text as data. European Accounting Review, 2 (5), 1085–1106. https://doi.org/10.1080/09638180.2023.2218423
- Bagús, P. (2015). The ZIRP trap - the institutionalization of negative real interest rates. Revista Procesos de Mercado, 12(2), 105–163.
- Balios, D., Eriotis, N., Tantos, S., & Vasiliou, D. (2020). Effective corporate income tax rates: Southern and northern economies of the...
- Barbera, A., Merello, P., & Molina, P. (2020). Determinants of corporate effective tax rates: Evidence from the euro area. Academia Revista...
- BBVA. (2022). NGEU Newsletter 5, February 2022. https://www.bbva.es/en/content/dam/public-web/bbvaes/documents/fondos-europeos-next-generation/boletin-febrero-22.pdf
- Belke, A. (2018). The effectiveness of the Fed’s quantitative easing policy - a survey of the econometrics. Estudios de Economía Aplicada,...
- Benigno, P., Canofari, P., DiBartolomeo, G., & Messori, M. (2022). The European monetary policy responses during the pandemic crisis....
- Bhatt, Y., Ghuman, K., & Dhir, A. (2020). Sustainable manufacturing. Bibliometrics and content analysis. Journal of Cleaner Production,...
- Blazquez-Soriano, A., Peña-Ortiz, R., & Merello, P. (2022). Analyzing firms’ engagement with the SDGs through web scraping. Book of Abstracts...
- Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1),...
- Bureau van Dijk. (2022). SABI database. https://login.bvdinfo.com/R0/SabiNeo
- Cardoni, A., & Kiseleva, Е. (2024). Do SMEs have an ESG communication strategy? Exploring the quality and influencing factors of voluntary...
- Chen, Y., Cuestas, J. C., & Regis, P. (2016). Convergence in corporate statutory tax rates in the Asian and Pacific economies. International...
- Claeys, G. (2021). What are the effects of the ECB’s negative interest rate policy? In-depth analysis. European Parliament. https://www.europarl.europa.eu/RegData/etudes/IDAN/2021/662922/IPOL_IDA(2021)662922_EN.pdf
- Delgado, F. J., Fernández, E., & Martínez, A. (2014). Effective tax rates in corporate taxation: A quantile regression for the EU. Inzinerine...
- Delgado, F. J., Fernández-Rodríguez, E., García-Fernández, R., Landajo, M., & Martínez-Arias, A. (2023). Tax avoidance and earnings management:...
- Demartini, M. C., Beretta, V., & Larisch, A. (2025). Does the transparency of sustainability reports matter? A quantitative assessment....
- DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational...
- Dissanayake, D., Kuruppu, S., Qian, W., & Tilt, C. (2020). Barriers for sustainability reporting: Evidence from Indo-Pacific region. Meditari...
- Djankov, S., Ganser, T., McLiesh, C., Ramalho, R., & Shleifer, A. (2010). The effect of corporate taxes on investment and entrepreneurship....
- Domazet, I. S., & Marjanović, D. M. (2018). Fdi as a factor of improving the competitiveness of developing countries: Fdi and competitiveness....
- Dyreng, S. D., Hanlon, M., Maydew, E. L., & Thornock, J. R. (2017). Changes in corporate effective tax rates over the past 25 years. Journal...
- EFRAG. (2022). Approach to EU voluntary reporting standard for SMEs outside the scope of CSRD and appendix 1 - SR TEG 17112022 [Issues Paper...
- European Commission. (2020). User guide to the SME definition. Publications Office of the European Union, 2020. ISBN 978-92-79-69902-3.
- Eurostat. (2023). Websites and functionalities by size class of enterprise. https://ec.europa.eu/eurostat/databrowser/view/isoc_ciweb__custom_7998110/default/table?lang=en
- Feeny, S., Harris, M., & Gillman, M. (2006). Econometric accounting of the Australian corporate tax rates: A firm panel example. Accounting...
- Fernández, E., García, R., & Martínez, A. (2021). Business and institutional determinants of effective tax rate in emerging economies....
- Fernández, E., García, R., & Martínez, A. (2023). Institutional determinants of the effective tax rate in G7 and BRIC countries. Economic...
- Fernández, E., & Martínez, A. (2014). Determinants of the effective tax rate in the BRIC countries. Emerging Markets Finance & Trade,...
- Fonseca, A. R., Fernández, E., & Martínez, A. (2019). Factores empresariales e institucionales condicionantes de la presión fiscal a nivel...
- Gandullia, L., & Piserà, S. (2020). Do income taxes affect corporate social responsibility? Evidence from European-listed companies. Corporate...
- García-Sánchez, I.-M., Rodríguez-Ariza, L., Aibar-Guzmán, B., & Aibar-Guzmán, C. (2020). Do institutional investors drive corporate transparency...
- Giner, B. (2022). Sustainability reporting: Some challenges from and for the European Union. Comptabilite Controle Audit, 28(4), 7–20. https://doi.org/10.3917/cca.284.0007
- Giner, B., & Luque-Vílchez, M. (2022). A commentary on the “new” institutional actors in sustainability reporting standard-setting: A...
- Gonzales, M., & Toyofuku, H. (2016). Política monetaria, tasa de interés y de descuento para evaluar proyectos de inversión. Quipukamayoc...
- Hemmelgarn, T., & Nicodeme, G. (2010). The 2008 financial crisis and taxation policy. Taxation paper no 20. Directorate General Taxation...
- Heras-Saizarbitoria, I., Urbieta, L., & Boiral, O. (2021). Organizations’ engagement with sustainable development goals: From cherry-picking...
- Hespel, A., & Mignolet, M. (2000). Tax-aided financial services companies and the cost of capital. Fiscal Studies, 21(3), 349–374. https://doi.org/10.1111/j.1475-5890.2000.tb00028.x
- Hill, C. W. L., & Jones, T. M. (1992). Stakeholder-agency theory. Journal of Management Studies, 29(2), 131–154. https://doi.org/10.1111/j.1467-6486.1992.tb00657.x
- Hsieh, Y. C. (2013). The heterogeneous relation between firm size and corporate effective tax rates: Evidence from listed companies in China....
- Huang, D. F., Chen, N. Y., & Gao, K. W. (2013). The tax burden of listed companies in China. Applied Financial Economics, 23(14), 1169–1183....
- Huerta de Soto, J. (2009). El error fatal de Ben Bernanke. Revista Procesos de Mercado, 6(1), 233–236. https://doi.org/10.52195/pm.v6i1.305
- Hummel, K., & Szekely, M. (2022). Disclosure on the sustainable development goals-evidence from Europe. Accounting in Europe, 19(1), 152–189....
- INE. (2022). Encuesta sobre uso de TIC y comercio electrónico en las empresas. https://www.ine.es/dyngs/INEbase/operacion.htm?c=Estadistica_Candcid=1254736176743andmenu=resultadosandidp=1254735576692
- Jaafar, A., & Thornton, J. (2015). Tax havens and effective tax rates: An analysis of private versus public European firms. The International...
- Jacob, M. (2022). Real effects of corporate taxation: A review. European Accounting Review, 31(1), 269–296. https://doi.org/10.1080/09638180.2021.1934055
- Janssen, B. (2005). Corporate effective tax rates in the Netherlands. De Economist, 153(1), 47–66. https://doi.org/10.1007/s10645-004-7127-y
- Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behaviour, agency costs and ownership. Journal of Financial Economics,...
- Joon, O. (2018). Icsb, 2016 conference: The role and impact of SMEs in implementing the new sustainable development goals. Journal of Small...
- Kannan, D., Shankar, K. M., & Gholipour, P. (2022). Paving the way for a green transition through mitigation of green manufacturing challenges:...
- Kurpierz, J. R., & Smith, K. (2020). The greenwashing triangle: Adapting tools from fraud to improve CSR reporting. Sustainability Accounting,...
- Lee, N., & Swenson, C. (2012). Are multinational corporate tax rules as important as tax rates? The International Journal of Accounting,...
- Ley 27/2014, de 27 de noviembre, del Impuesto sobre Sociedades [Law 27/2014, of 27 November, on Corporate Income Tax]. (2014). Spain. https://www.boe.es/eli/es/l/2014/11/27/27/con
- Ley 31/2022, de 23 de diciembre, de Presupuestos Generales del Estado para el año 2023 [Law 31/2022, of 23 December, of the Spanish State...
- Lian, Z. (2022). The nexus between CSR disclosure, effective tax rate, corruption, and sustainable business performance: Evidence from asean...
- Liu, X., & Cao, S. (2007). Determinants of corporate effective tax rates: Evidence from listed companies in China. The Chinese Economy,...
- Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in made in Italy SMEs:...
- Mayr, S., Mitter, C., & Aichmayr, A. (2017). Corporate crisis and sustainable reorganization: Evidence from bankrupt Austrian SMEs. Journal...
- Mazur-Wierzbicka, E. (2021). E-communication and CSR - a new look at organizations’ relations with stakeholders in the time of digitalization....
- Menicacci, L., & Simoni, L. (2024). Negative media coverage of ESG issues and corporate tax avoidance. Sustainability Accounting, Management...
- Moreno, J., Gonzalez, M. R., & Martin, R. C. (2017). Determinants of the effective tax rate in the tourism sector: A dynamic panel data...
- Nicolò, G., Zampone, G., De Iorio, S., & Sannino, G. (2024). Does SDG disclosure reflect corporate underlying sustainability performance?...
- Noor, R., Fadzillah, N. S. M., & Mastuki, N. (2010). Corporate tax planning: A study on corporate effective tax rates of Malaysian listed...
- Permatasari, P., & Gunawan, J. (2023). Sustainability policies for small medium enterprises: Who are the actors? Cleaner and Responsible...
- Pirlot, A. (2020). A legal analysis of the mutual interactions between the UN sustainable development goals (SDGs) and taxation. In C. Brokelind...
- Pizzi, S., Del Baldo, M., Caputo, F., & Venturelli, A. (2022). Voluntary disclosure of sustainable development goals in mandatory non-financial...
- Raimo, N., Caragnano, A., Zito, M., Vitolla, F., & Mariani, M. (2021). Extending the benefits of esg disclosure: The effect on the cost...
- Roodman, D. (2006). How to do xtabond2: An introduction to difference and system GMM in Stata. Center for Global Development working paper,...
- Roodman, D. (2009). A note on the theme of too many instruments. Oxford Bulletin of Economics and Statistics, 71(1), 135–158. https://doi.org/10.1111/j.1468-0084.2008.00542.x
- Rosati, F., & Faria, L. G. D. (2019). Business contribution to the sustainable development agenda: Organizational factors related to early...
- Salaudeen, Y. M., & Eze, U. C. (2018). Firm specific determinants of corporate effective tax rate of listed firms in Nigeria. Journal...
- Schep, A., Monsma, A., & Kastelein, R. (2022). How taxes of local governments can contribute to climate goal. Erasmus Law Review, 3(3),...
- Smith, H., Discetti, R., Bellucci, M., & Acuti, D. (2022). Smes engagement with the sustainable development goals: A power perspective....
- Spanish Ministry of Industry, Commerce and Tourism. (2019). Marco estratégico en política de PYME 2030. (In Spanish). https://industria.gob.es/es-es/Servicios/MarcoEstrategicoPYME/Marco%20Estrat%C3%A9gico%20PYME.pdf
- Stolowy, H., & Paugam, L. (2023). Sustainability reporting: Is convergence possible? Accounting in Europe, 20(2), 139–165. https://doi.org/10.1080/17449480.2023.2189016
- Tang, S., & Higgins, C. (2022). Do not forget the “how” along with the “what”: Improving the transparency of sustainability reports. California...
- Tang, T., Mo, P. L. L., & Chan, K. H. (2017). Tax collector or tax avoider? An investigation of intergovernmental agency conflicts. The...
- Thammaraksa, C., Caroline, H. G., Hauschild, M. Z., Pontoppidan, C. A., & Laurent, A. (2024). Business reporting of Sustainable Development...
- Triebe, M. J., Deng, S., Pérez-Cardona, J. R., Joung, B. G., Wu, H., Shakelly, N., Pieper, J. P., Zhou, X., Maani, T., Zhao, F., & Sutherland,...
- UNCTAD - United Nations Conference on Trade and Development. (2024). Shaping the future of SME sustainability disclosure: A holistic approach....
- United Nations. Sustainable Development Goals -. Retrieved July , 2023 from https://sdgs.un.org/en/goals
- Vestergaard, J., & Gabor, D. (2022, May). Should central bank liquidity be a vehicle for fiscal disciplining? Cambridge Journal of Economics,...
- Villiers, C. (2022). New directions in the European Union’s regulatory framework for corporate reporting, due diligence and accountability:...
- Wagner, J. (2021). With a little help from my website: Firm survival and web presence in times of COVID-19-evidence from 10 European countries....
- Wickert, C., Scherer, A. G., & Spence, L. J. (2016). Walking and talking corporate social responsibility: Implications of firm size and...
- Zampone, G., & Guidi, M. (2024). Sustainability reporting and assurance practices contribution to SDG disclosure: Evidence from communication...
- Zeng, T. (2019). Country-level governance, accounting standards, and tax avoidance: Across-country study. Asian Review of Accounting, 27(3),...