A first order implication is that tax avoidance will positively impact firm cash holdings. However, recent research contends that tax avoidance strategies impede the flow of firm specific information and consequently permits managers to divert firm resources. In light of this complementary relation ...
We investigate whether firms in close customer-supplier relationships are better able to identify and implement tax avoidance strategies via supply chains. Consistent with our prediction, we find that both principal customers and their dependent suppliers avoid more taxes than other firms. Further analysi...
1 Shackelford and Shevlin (2001) review tax research including research on the role of taxes in decision-making. A sampling of studies of short-run tax avoidance or particular tax avoidance strategies includes: Graham and Tucker (2005), Edwards (2005), Rego (2003), Engel, Erickson and Maydew...
Influence of Ownership Structure, Corporate Governance, and Culture on Tax Policy: Evidence from Malaysia This study examines whether the tax avoidance strategies that reflect special tax provisions provided to industries is determined by the ownership structur... S Mahenthiran,J Kasipillai - 《Ssrn...
They also discovered that a company's current operating pattern, non-current passivity ratio, and return on assets (ROA) ratio all have a significant and beneficial impact on tax avoidance strategies. On the other hand, they demonstrated a negative relationship between the ratio of capital growth...
Subsequent studies (e.g., Mills and Newberry, 2001 and Cloyd et al., 1996) focused on the book-tax tradeoffs of tax avoidance opportunities (i.e., some tax avoidance strategies reduce both taxable and financial statement - 5 - income, whereas others only affect taxable income). Although ...
Given that tax avoidance is risky and costly for the firm and its employees, we argue that low state UI benefits increase labor unemployment risk and, hence influence firms' tax strategies. Consistent with our main hypothesis, we find a negative relation between tax avoidance and unemployment ...
According to the Financial Accountability and Corporate Transparency (FACT) Coalition, the act — if passed — could provide a "spotlight" on corporate profit shifting and tax avoidance strategies. "We urge the Senate to expedite this important transparency measure after its quick pa...
Tax avoidanceTax evasionTax aggressivenessTax riskMarket reactionMoral of marketsThis study examines stock market responses to news on corporate tax strategies. Our dataset includes 176 tax news items regarding listed German firms over the period from 2003 to 2016. In contrast to previous research, ...
This chapter covers US corporate tax laws and regulations including tax work over the year, the attractiveness of the US for holding companies and more.