...Michelle Hutchens; Sonja O. Rego; Brian Williams ABSTRACT We examine the relations between tax avoidance and two components of firm risk (priced risk and idiosyncratic risk) using latent class mixture models. OLS regressions suggest that tax avoidance is negatively related to both priced risk...

... note: Accepted by Sonja Olhoft Rego, under the Senior Editorship of Mary E. Barth. 24 03 2020 27 01 2023 27 03 2023 2023 tax-motivated income shifting cost structure tax avoidance international taxation Both academic researchers and practitioners acknowledge...

...Charles G. McClure ABSTRACT I develop a structural model to quantify the costs of tax avoidance. In the model, the firm trades off tax savings with tax audit risk, financial reporting considerations, and operational frictions imposed by tax avoidance, the last of which I label as nontax costs...

..., as linked in the text. Editor’s note: Accepted by Lillian F. Mills, under the Senior Editorship of Mary E. Barth. 08 10 2021 02 10 2022 18 10 2022 2023 tax haven tax avoidance banking market consolidation tax planning intermediation Multinational firms...

...Ruiyuan Chen; Sadok El Ghoul; Omrane Guedhami; He Wang; Yang Yang ABSTRACT Using a sample of firms from 51 countries and a difference-in-differences approach that exploits corporate governance shocks induced by cross-listing in the U.S., we find that firms tend to engage in less tax avoidance...

... complexity. Collectively, our results support the conclusion that mandatory private CbCR causes firms to change real investment activities to substantiate their tax avoidance activities in Europe while reducing the appearance of aggressive tax practices. JEL Classifications: H20; H25; H26; H32; K22; L51...

...Ashish Agarwal; Shannon Chen; Lillian F. Mills ABSTRACT We examine the effect of pass-through entities embedded in corporate structures on tax avoidance, tax uncertainty, and tax noncompliance using unique, confidential tax return data that link corporations and pass-through entities together...

... expenditures on infrastructure projects. Against this backdrop, we study how political appointments influence local firms' tax planning. Based on a sample of locally administered state-owned enterprises (SOEs), we find that firms decrease their tax avoidance after new leaders take office. The political...

...Tobias Bauckloh; Inga Hardeck; Kerry K. Inger; Patrick Wittenstein; Bernhard Zwergel ABSTRACT This research examines spillover effects of tax avoidance on peers' firm value using the setting of the European Commission's state aid investigations of private letter rulings. We assume that news about...

...-of-funds model from finance to quantify the relative amounts of tax-related cash associated with various potential uses of operating cash flow. We find firms allocate tax-related cash differently than other after-tax cash flow. Prior studies find tax avoiders hold more cash, and our results suggest...

... University and The University of Georgia. Supplemental material can be accessed by clicking the link in Appendix C. Editor's note: Accepted by Lillian F. Mills. 10 2017 8 2019 2020 income shifting tax avoidance shadow insurance We investigate an economically...

... of Mark L. DeFond. 9 2016 6 2019 2020 tax enforcement Internal Revenue Service tax avoidance Over the last fifty years, none of us has ever witnessed anything like what has happened to the IRS appropriations over the last five years and the impact these appropriations...

... scrutiny from the tax authority. Editor's note: Accepted by Edward L. Maydew, under the Senior Editorship of Mark L. DeFond. December 2016 January 2019 © 2019 American Accounting Association. 2019 tax planning tax avoidance risk asset pricing We appreciate...

...David A. Guenther; Ryan J. Wilson; Kaishu Wu ABSTRACT We investigate whether tax avoidance becomes more uncertain as the rate of tax avoidance increases. We estimate a system of equations to demonstrate that as firms' pretax income increases, each additional dollar of potential tax results...

...Scott D. Dyreng; Michelle Hanlon; Edward L. Maydew ABSTRACT We investigate the relation between tax avoidance and tax uncertainty, where tax uncertainty is the amount of unrecognized tax benefits recorded over the same time period as the tax avoidance. On average, we find that tax avoiders, i.e...

...James A. Chyz; Fabio B. Gaertner ABSTRACT Our study examines the effect of corporate tax outcomes on forced CEO turnover. While prior research argues that firms often do not engage in tax avoidance due to reputational concerns, the empirical evidence suggesting the existence of reputational costs...

... and tax avoidance incentives. We find that the conflicts between central and local governments arising from the 2002 tax sharing reform have led to more tax avoidance by local government-controlled firms, particularly when the local government's ownership percentage of the firms is higher than the tax...

...Mozaffar Khan; Suraj Srinivasan; Liang Tan ABSTRACT We provide new evidence on the agency theory of corporate tax avoidance ( Slemrod 2004 ; Crocker and Slemrod 2005 ; Chen and Chu 2005 ) by showing that increases in institutional ownership are associated with increases in tax avoidance. Using...

...David A. Guenther; Steven R. Matsunaga; Brian M. Williams ABSTRACT We test whether tax avoidance strategies are associated with greater firm risk. We find that low tax rates tend to be more persistent than high tax rates and that measures of tax avoidance commonly used in the literature...

...Thomas R. Kubick; Daniel P. Lynch; Michael A. Mayberry; Thomas C. Omer ABSTRACT This study examines the tax avoidance behavior of firms prior to the issuance, and following the resolution, of SEC tax comment letters. We find that firms that appear to engage in greater tax avoidance are more likely...