Customer concentration and corporate tax avoidance

Huang, Haochu; Lobo, Gerald J.; Wang, Chong; Xie, Hong

doi:10.1016/j.jbankfin.2016.07.018

Cited by 161 publications

(85 citation statements)

References 54 publications

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“…Our study contributes to and extends the supply chain literature (e.g., Ak and Patatoukas 2016;Hertzel et al 2008;Huang et al 2016;Irvine et al 2016;Jorion and Zhang 2009;Patatoukas 2012) by providing the first evidence on auditors' tendencies to issue a GCO when distressed firms rely heavily on their major customers and on the key conditions that influence this relationship. Krishnan et al (2018) find that auditors are not likely to issue GCOs to firms that rely more heavily on major customers.…”

Section: Introductionmentioning

confidence: 61%

Greater Reliance on Major Customers and Auditor Going‐Concern Opinions

Dhaliwal

Michas

Naiker

et al. 2020

Contemporary Accting Res

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In this study, we predict and provide evidence that distressed firms that rely more heavily on major customers for sales have a comparatively higher incidence of receiving going‐concern opinions (GCOs). Moreover, we find that the effect of increased reliance on major customers is driven by firms that are more distressed. We also theorize that variations in key characteristics of the relationship between a distressed firm and its largest major customer are incrementally linked to GCOs, and present evidence consistent with this. Specifically, we find that the effect of greater reliance on major customers is driven by firms that are relatively smaller than their largest major customer. Additionally, we find that greater reliance on major customers is positively (negatively) associated with GCOs when firms are in a shorter (longer) relationship with their major customer and when firms have a different auditor to (same auditor as) the largest major customer. Overall, our study indicates that supply chain relationships are relevant business risks associated with auditors' going‐concern assessments.

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Section: Introductionmentioning

confidence: 61%

Greater Reliance on Major Customers and Auditor Going‐Concern Opinions

Dhaliwal

Michas

Naiker

et al. 2020

Contemporary Accting Res

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“…Second, reliance on major customers requires a supplier to make relationship-specific investments that are specific to the customers (Gu et al, 2017), which leads to high financial distress costs and low cash flow for the supplier (Huang et al, 2016). The investments involve resources that are committed to production for a major customer and thus represent costs that a supplier firm cannot fully recover unless they maintain the relationship (Irvine et al, 2016).…”

Section: Supplier Dependence and Randd Intensitymentioning

confidence: 99%

“…However, power is a central element in buyer-supplier relationships and has received a significant amount of attention in the supply chain literature (Reimann and Ketchen, 2017). Although our method has been widely used in the literature on supplier dependence (Ak and Patatoukas, 2016;Elking et al,2017;Huang et al, 2016), it would be interesting to conduct survey research and investigate how the dependence of different types of power, such as reward, coercive, and non-mediated power, affect R& D investment.…”

Section: Limitations and Future Researchmentioning

confidence: 99%

“…Supplier dependence refers to the extent to which a supplier firm relies on its major customers for financial resources (Elking et al, 2017;Patatoukas, 2012;Tangpong et al, 2008). Dependence upon major customers is one of the most critical characteristics of supplier-customer relationships (Huang et al, 2016). Such dependence indicates the amount of power occupied by a dominant buyer, resulting in a deterioration of a dependent supplier's commitment and cooperation (Handley and Benton, 2012;McHugh et al, 2003).…”

Section: Introductionmentioning

confidence: 99%

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Supplier dependence and R&D intensity: The moderating role of network centrality and interconnectedness

Kim

Zhu

2018

J of Ops Management

130

197

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This study examines whether financial dependence upon a few customers is negatively related to the allocation of innovation resources of supplier firms. Furthermore, this study investigates whether these negative effects of supplier dependence on research and development (R&D) intensity are reduced when the supplier leverages social capital conceptualized in terms of eigenvector centrality and interconnectedness. Using panel data, we find that a supplier firm's dependence upon major customers has a negative relationship with the supplier firm's R&D intensity. Our results, however, reveal that a dependent supplier having high eigenvector centrality or working with other companies that are densely connected to each other mitigates the negative effects of supplier dependence on R&D intensity. These findings highlight the importance of external information or resources being available in supply networks when suppliers that are dependent upon major customers explore and exploit opportunities for new product development.

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“…Os atributos ambientais onde a firma atua se constituem em um determinante da agressividade tributária, tais como a concorrência de mercado do produto (Kubick, Lynch, Mayberry & Omer, 2015), a concentração do clientes (Huang, Lobo, Wang, & Xie, 2016), a atuação em mercados internacionais (De Simone, Klassen & Seidman, 2017;Markle, 2016) Existem evidências de ligações entre a Agressividade Tributária e custos políticos potenciais (Mills et al, 2013) e os efeitos de repetidas anistias fiscais (Shevlin, Thornock & Williams, 2017). Com a crescente concorrência global, a evolução tecnológica, as regras e a forma de evolução dinâmica do ambiente em que operam as empresas, há oportunidades para compreender o papel dessas condições na decisão sobre grau de Agressividade Tributária (Wilde & Wilson, 2017).…”

Section: Atributos Ambientaisunclassified

Agressividade Tributária: Um Survey da Literatura

Martinez

2017

REPeC

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Objetivo e Método: o objetivo deste artigo é revisar os estudos internacionais e no Brasil sobre a agressividade tributária, esta entendida como o comportamento de tentar evitar ou minimizar o ônus tributário explícito para a corporação. Enquanto tema de pesquisa acadêmica, o tax aggressiveness ou tax avoidance revela-se em um tópico diversificado e vasto, embora relativamente recente. Resultados e Contribuições: Entre as perguntas de pesquisa que nessa temática se desenvolvem, destaquem-se a identificação de quais seriam os determinantes da agressividade tributária da firma, apreciando: (i) características das firmas; (ii) atributos ambientais; (iii) restrições de gatekeepers; e (iv) incentivos para as firmas. Revisam-se os determinantes da agressividade tributária dos gestores e a influência da governança e estrutura de controle. Adicionalmente, identificam-se as potenciais consequências econômico-financeiras da agressividade tributária para as firmas e as proxies empíricas existentes para mensurar a agressividade tributária. O estudo se encerra com a apresentação de oportunidades futuras de pesquisa na temática.

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Customer concentration and corporate tax avoidance

Cited by 161 publications

References 54 publications

Greater Reliance on Major Customers and Auditor Going‐Concern Opinions

Greater Reliance on Major Customers and Auditor Going‐Concern Opinions

Supplier dependence and R&D intensity: The moderating role of network centrality and interconnectedness

Agressividade Tributária: Um Survey da Literatura

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