Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/87979
Title: Does Information Asymmetry Affect Corporate Tax Aggressiveness?
Authors: Chen, Jonas Tao
Lin, Chen
Keywords: Information Asymmetry
Tax
Issue Date: 2017
Source: Chen, T., & Lin, C. (2017). Does Information Asymmetry Affect Corporate Tax Aggressiveness?. Journal of Financial and Quantitative Analysis, 52(5), 2053-2081.
Series/Report no.: Journal of Financial and Quantitative Analysis
Abstract: We investigate the effect of information asymmetry on corporate tax avoidance. Using a difference-in-differences matching estimator to assess the effects of changes in analyst coverage caused by broker closures and mergers, we find that firms avoid tax more aggressively after a reduction in analyst coverage. We further find that this effect is mainly driven by firms with higher existing tax-planning capacity (e.g., tax-haven presence), smaller initial analyst coverage, and a smaller number of peer firms. Moreover, the effect is more pronounced in industries where reputation matters more and in firms subject to less monitoring from tax authorities.
URI: https://hdl.handle.net/10356/87979
http://hdl.handle.net/10220/44541
ISSN: 0022-1090
DOI: http://dx.doi.org/10.1017/S0022109017000576
Rights: © 2017 Michael G. Foster School of Business, University of Washington. This paper was published in Journal of Financial and Quantitative Analysis and is made available as an electronic reprint (preprint) with permission of Michael G. Foster School of Business, University of Washington. The published version is available at: [http://dx.doi.org/10.1017/S0022109017000576]. One print or electronic copy may be made for personal use only. Systematic or multiple reproduction, distribution to multiple locations via electronic or other means, duplication of any material in this paper for a fee or for commercial purposes, or modification of the content of the paper is prohibited and is subject to penalties under law.
Fulltext Permission: open
Fulltext Availability: With Fulltext
Appears in Collections:NBS Journal Articles

Files in This Item:
File Description SizeFormat 
Does Information Asymmetry Affect Corporate Tax Aggressiveness.pdf356.55 kBAdobe PDFThumbnail
View/Open

Google ScholarTM

Check

Altmetric

Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.