Publication Type

Conference Paper

Publication Date

12-2014

Abstract

We examine whether the inclusion of general counsel in top management is associated with a firm’s tax avoidance. We find that firms with general counsel as part of the top management team have lower GAAP effective tax rate, more uncertain tax positions, a higher likelihood of engaging in tax shelter activities, and more tax haven countries in which the firm reports a significant subsidiary, relative to firms without a general counsel in top management. In addition, we find that among firms with general counsel in top management, tax avoidance is greater when (1) the general counsel has tax-related expertise, (2) the firm hires an external auditor with tax expertise or purchases more tax services from its external auditor, and (3) the CEO has more power over the general counsel.

Keywords

Top management composition, general counsel, tax avoidance

Discipline

Accounting | Corporate Finance | Taxation

Research Areas

Corporate Reporting and Disclosure

Publication

American Accounting Association Annual Meeting 2014, August, Houston TX; European Financial Management Association Conference 2014, June 25-28, Rome; World Finance Conference 2014, December 12-13, Singapore

First Page

1

Last Page

63

City or Country

Singapore

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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