Publication Type

Journal Article

Version

acceptedVersion

Publication Date

5-2021

Abstract

We examine whether employee perceptions of managers and firms fall following tax avoidance news. Using S&P 500 firms and generalized difference-in-differences specifications, we find that tax avoidance news negatively affects employee perceptions of managers and firms. In cross-sectional tests, we find that (1) firms and managers in consumer-facing industries suffer larger employee-related perception changes from tax avoidance news compared to other firms, and (2) well-performing firms and their managers face smaller perception changes than other firms and managers. Overall, our results are consistent with tax avoidance news negatively affecting employee perceptions of managers and firms.

Keywords

tax avoidance news, reputation, employee ratings, Glassdoor

Discipline

Accounting | Human Resources Management

Research Areas

Corporate Reporting and Disclosure

Publication

Accounting Review

Volume

96

Issue

3

First Page

343

Last Page

372

ISSN

0001-4826

Identifier

10.2308/TAR-2019-0148

Publisher

American Accounting Association

Embargo Period

7-5-2021

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.2308/TAR-2019-0148

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