This study investigates the effect of tax enforcement on corporate social responsibility (CSR) performance. By using the Third Phase of China’s Golden Tax Project as an exogenous shock to conduct a difference–in–differences estimation, we find that tax enforcement has a sizable positive effect on CSR performance, which is mainly achieved through improving the performance of corporations in fulfilling their responsibilities to their employees, suppliers, customer and consumer rights, and the environment. Our findings are robust to different s...
