...Qintao Fan; David A. Guenther; Kaishu Wu ABSTRACT Prior studies provide mixed evidence on the relation between tax avoidance and cost of equity capital. To understand how this relation varies across firms, we model income tax as containing both a fixed component (like a tax credit or deduction...

...Anne C. Ehinger; Joshua A. Lee; Bridget Stomberg; Erin Towery ABSTRACT Although voluntary tax disclosures can improve firms’ information environments and reduce financial statement users’ costs of processing complex tax information, they can also inform tax authorities about tax avoidance...

...Junwei Xia ABSTRACT In 2016, the U.K. passed a regulation that requires large businesses to publicly disclose their tax strategy. The U.K. regulator expects these qualitative disclosures to attract public scrutiny of firms’ tax practices, thereby pressuring firms to reduce tax avoidance...

... results suggest that a subset may warrant further scrutiny. JEL Classifications: H25; H26; H32; M41; M48. Editor’s note: Accepted by Senior Editor Lisa De Simone. 06 02 2023 06 11 2024 08 11 2024 2024 ASC 740-10 (FIN 48) unrecognized tax benefit (UTB) tax avoidance...

...Mário Marques; Tânia Menezes Montenegro; Filomena Antunes Brás ABSTRACT We analyze 117 estimates from 23 studies that examine the relationship between corporate social responsibility (CSR) and corporate tax aggressiveness. The meta-regression results indicate that both CSR and tax avoidance...

... also find some evidence of a positive association between socially responsible tax disclosures and tax avoidance, particularly among U.S. firms. Our results should be useful for standard setters and readers of CSR reports. Data Availability: Data are available from the public sources cited...

... are politically controversial. The extent to which they foster innovation is unclear. Yet IP boxes increase potential tax avoidance, especially for MNEs with mobile capital. Proponents of IP boxes justify significant reductions in statutory tax rates for intellectual property as a necessary policy measure...

...) and Guenther and Sansing (2000 , 2004 ), I nevertheless predict that investors will price these items. deferred taxes depreciation valuation tax avoidance discounting I next consider the factors that might influence the magnitude of investor pricing. As noted above, Amir et al. (1997...

...Yangmei Wang; Kirsten A. Cook; Tao Ma ABSTRACT As interim CEO appointments are common in CEO successions, we examine these temporary executives’ economic impact on their firms. Specifically, we explore how interim CEOs affect corporate tax avoidance. We match each “interim CEO firm” (test firms...

...Yoojin Lee; Terry Shevlin; Aruhn Venkat ABSTRACT Existing studies find that tax avoidance affects the cost of debt and equity in different ways but does not examine the consequences of these associations. This study examines a direct and important implication of the effect of tax avoidance...

... responsibility investor perceptions tax avoidance For some corporations, the relation between their reputation for corporate social responsibility (CSR) and tax avoidance has come under increased scrutiny. For example, in 2012, the U.K. parliament investigated Starbucks and a number of other companies...

...Dan S. Dhaliwal; Theodore H. Goodman; P. J. Hoffman; Casey M. Schwab ABSTRACT We examine the incidence, valuation, and management of tax-related reputational costs during 2011, a year of extensive social protest that temporarily increased scrutiny of corporate tax avoidance. We report three main...

...James A. Chyz; Ronen Gal-Or; Vic Naiker; Divesh S. Sharma ABSTRACT This study examines associations between auditor provided tax compliance and tax planning services and tax avoidance and tax risk. Collectively, our results suggest that companies paying their auditors for tax planning advice...

... predict and find firms with higher proprietary costs of disclosure (i.e., higher tax avoidance) are less likely to disclose segment-level tax information. These results are stronger for firms that define business segments on a geographic basis, where disclosure could reveal tax expense information about...

...David A. Guenther; Linda K. Krull; Brian M. Williams ABSTRACT We provide a theoretical framework to identify when measures of tax avoidance reflect tax avoidance related to, and unrelated to, earnings management. The influence of earnings management on measures of tax avoidance occurs because...

...Michael A. Mayberry; Luke Watson ABSTRACT We employ states' enactment of constituency statutes as plausibly exogenous shocks to the marginal cost of corporate social responsibility (CSR) and examine the relation between CSR and corporate tax avoidance. We find almost no evidence of an association...

...Mark (Shuai) Ma; Wayne B. Thomas ABSTRACT This study examines the effect of legal environment on corporate state income tax avoidance. We find that the extent of penalties on corporate officers reduces state tax avoidance. However, we find no evidence that the extent of penalties on shareholders...

...Hanwen Chen; Daoguang Yang; Xinmin Zhang; Nan Zhou ABSTRACT We study the role of internal control in tax avoidance by evaluating the efficacy of the COSO framework in tax risk management. First, we use a comprehensive COSO-based index in China that covers a firm's internal control over not only...

... upon request. tax avoidance social network analysis auditor networks auditor tax expertise The authors thank Connie D. Weaver (editor), two anonymous reviewers, Ryan Huston (discussant), Sean McGuire, Thomas Omer, Stephanie Rasmussen (discussant), Joe Schroeder (discussant), Marco...

...Chelsea Rae Austin ABSTRACT While not explicitly stated, many tax avoidance studies seek to investigate tax avoidance that is the result of firms' deliberate actions. However, measures of firms' tax avoidance can also be affected by factors outside the firms' control—tax surprises. This study...