This paper investigates the association between corporate social responsibility (CSR) and tax avoidance (TA), with a particular focus on how political connections influence this relationship. The study examines non-financial companies listed on the Egyptian Exchange (EGX) over the period from 2017 to 2022, encompassing a final sample of 70 firms and 420 firm-year observations. Pooled Ordinary Least Squares (OLS) and fixed-effects regression methods are utilized for statistical analysis. The findings reveal a significant positive correlation between CSR activities and a higher degree of TA, suggesting that companies involved in CSR are more likely to engage in TA. Moreover, political connections are shown to have a moderating effect, further strengthening this relationship. To the authors’ knowledge, this research is one of the first attempts to explore the moderating influence of political connections on the CSR-TA relationship in an emerging market context. By doing so, it extends the debate in the literature regarding the negative role played by political connections in increasing TA in developing markets. Previous studies primarily focused on the direct link between CSR and TA, but this study sheds light on the nuanced interaction between these factors when political ties are considered.

This study examines the impact of tax avoidance practices on investment efficiency in Egypt, with particular emphasis on the moderating role of earnings management by exploring whether these tactics reflect managerial opportunism or serve as a mechanism to ease financial constraints. We employ panel data regression to analyze a sample of 58 non-financial firms listed on the Egyptian Exchange (EGX) over the period 2017–2024, yielding 464 firm-year observations. Data are collected from official corporate websites, EGX, and Egypt for Information Dissemination (EGID). Grounded in agency theory, signaling theory, and pecking order theory, this study reveals how conflicts of interest and information asymmetry between managers and stakeholders lead to managerial opportunism. The findings show that tax avoidance undermines the investment efficiency in the Egyptian market. Earnings manipulation further intensified this effect due to the financial statements’ opacity. A closer examination reveals that earnings management exacerbates overinvestment by masking managerial decisions. Conversely, for financially constrained firms with a tendency to underinvest, tax avoidance and earnings management may contribute to improved efficiency by generating internal liquidity and alleviating external financing constraints. These results provide valuable insights for regulators, highlighting that policy should be directed against managerial opportunism and improving transparency, instead of focusing solely on curbing tax avoidance. From an investor perspective, they should closely monitor and understand the tax-planning strategies to ensure they enhance the firm’s value.

This study was conducted to investigate the impact of climate change disclosure on the cost of debt and gain deep insight into the usefulness of political connections and ESG disclosure for reducing the cost of debt. A sample of 83 listed firms in the Egyptian context, spanning 498 observations over 6 years from 2018 to 2023, was used. A quantitative approach was adopted to examine the key hypotheses. This research reveals that climate change disclosure decreases the cost of debt. Furthermore, political connections and ESG disclosure moderate the main nexus. Multiple robustness checks were conducted to confirm these findings. Crucial policy implications for regulators, investors, and sustainability experts were developed by highlighting the latest practices of corporations aligned with achieving Sustainable Development Goals. The significance of this study lies in filling several gaps in the literature regarding climate change disclosure, political connections, and ESG disclosure and how a company’s strategic approach can impact the cost of capital.