The DOI matches its Crossref record; 56 of the 56 references it cites were found in a registry or an index.
Tax Aggressiveness and Corporate Transparency
Abstract
We investigate whether aggressive tax planning firms have a less transparent information environment. Although tax planning provides expected tax savings, it can simultaneously increase the financial complexity of the organization. And to the extent that this greater financial complexity cannot be adequately clarified through communications with outside parties, such as investors and analysts, transparency problems can arise. Our investigation of the association between tax aggressiveness and information asymmetry, analysts' forecast errors, and earnings quality suggests that aggressive tax planning is associated with lower corporate transparency. We also find evidence that managers at tax-aggressive firms attempt to mitigate these transparency problems by increasing various tax-related disclosures. Overall, our results suggest that firms face a trade-off between tax benefits and financial transparency when choosing the aggressiveness of their tax planning. JEL Classifications: G30; H26; M41.
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The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors
Dechow, P. M., & Dichev, I. D. (2002) · The Accounting Review · doi:10.2308/accr.2002.77.s-1.35 · Cited by 5,152
Disclosure, Liquidity, and the Cost of Capital
DIAMOND, D. W., & VERRECCHIA, R. E. (1991) · The Journal of Finance · doi:10.1111/j.1540-6261.1991.tb04620.x · Cited by 3,836
Inferring Trade Direction from Intraday Data
LEE, C. M. C., & READY, M. J. (1991) · The Journal of Finance · doi:10.1111/j.1540-6261.1991.tb02683.x · Cited by 3,147
The market pricing of accruals quality
Francis, J., LaFond, R., Olsson, P., & Schipper, K. (2005) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2004.06.003 · Cited by 3,087
What Matters in Corporate Governance?
Bebchuk, L., Cohen, A., & Ferrell, A. (2009) · Review of Financial Studies · doi:10.1093/rfs/hhn099 · Cited by 2,906
Hanlon, M., & Heitzman, S. (2010) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2010.09.002 · Cited by 2,888
Costs of Equity and Earnings Attributes
Francis, J., LaFond, R., Olsson, P. M., & Schipper, K. (2004) · The Accounting Review · doi:10.2308/accr.2004.79.4.967 · Cited by 2,377
The Economic Consequences of Increased Disclosure
Leuz, C., & Verrecchia, R. E. (2000) · Journal of Accounting Research · doi:10.2307/2672910 · Cited by 2,370
Corporate tax avoidance and high-powered incentives
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Cited by
HASAN, I., HOI, C.-K. S., WU, Q., & ZHANG, H. (2017) · Journal of Accounting Research · doi:10.1111/1475-679x.12159 · Cited by 413
Institutional investors' horizons and corporate employment decisions
Ghaly, M., Dang, V. A., & Stathopoulos, K. (2020) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2020.101634 · Cited by 253
Metadata
- Authors
- Balakrishnan, K., Blouin, J. L., & Guay, W. R.
- Venue
- The Accounting Review
- Publisher
- American Accounting Association
- Published
- 2018-04-01
- Volume
- 94
- Issue
- 1
- Pages
- 45-69
- ISSN
- 0001-4826 (ISSN-L)
- 1558-7967
- OpenAlex
- W2919224840
- Cited by
- 614
- References
- 56
- FWCI
- 134.64
- Type
- journal article
- Language
- en
- Open access
- closed
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