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
Citation
LEE, Yoojin; NG, Shaphan; SHEVLIN, Terry; and VENKAT, Aruhn.
The effects of tax avoidance news on employee perceptions of managers and firms: Evidence from Glassdoor.com ratings. (2021). Accounting Review. 96, (3), 343-372.
Available at: https://ink.library.smu.edu.sg/soa_research/1894
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2308/TAR-2019-0148