Publication Type
Conference Paper
Publication Date
5-2018
Abstract
This study examines how tax avoidance affects corporate transparency. Using a large sample ofU.S. firms from 1995 to 2016, we find a significant non-linear effect of tax avoidance ontransparency. That is, when a firm’s tax avoidance is low, an increase in tax avoidance improvestransparency; however, when a firm’s tax avoidance is high, an increase in tax avoidance decreasestransparency. These results are robust to using alternative measures of transparency and taxavoidance and in several additional tests. Overall, the findings suggest that the effect of taxavoidance on transparency depends on the aggressiveness of firms’ tax avoidance behavior. Ourstudy contributes to the literature on the economic consequences of tax avoidance.
Discipline
Accounting
Research Areas
Corporate Reporting and Disclosure
Publication
ABFER 6th Annual Conference, Singapore, 2018 May 21-23
Publisher
Springer
City or Country
NUS
Citation
LI, Congcong; MA, Mark; OMER, Tom; and SUN, Kunpeng.
How does tax avoidance affect transparency?. (2018). ABFER 6th Annual Conference, Singapore, 2018 May 21-23.
Available at: https://ink.library.smu.edu.sg/soa_research/1763
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.