Governance and Taxes: Evidence from Regression Discontinuity (Retracted)

Bird, Andrew; Karolyi, Stephen A.

doi:10.2308/accr-51520

Cited by 84 publications

(41 citation statements)

References 48 publications

(37 reference statements)

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“…Subsequently, this line of research has advanced, and researchers have proposed other focuses and incorporated new variables, as described in the review by Wilde and Wilson [10]. Several studies have considered management incentives [11][12][13][14][15][16], company governance activities [17][18][19][20][21][22][23][24][25], or ownership structure from various perspectives [26][27][28][29][30][31].…”

Section: Introductionmentioning

confidence: 99%

Influence of Ownership Structure on the Determinants of Effective Tax Rates of Spanish Companies

2019

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This paper examines the effect of state ownership on the effective tax rates of Spanish companies. Using information regarding 3169 companies during the period of 2008–2014, we show that there are significant differences between the tax burdens of non-state-owned enterprises (NSOEs) and state-owned enterprises (SOEs), with the effective tax rates of private ownership companies being higher than those of state-owned firms. Company features, such as size, leverage, research and development investment, profitability, firm age, foreign operations, and auditing determine the tax burden of private ownership firms. That of state-owned companies, however, is affected only by leverage and capital intensity. For both SOEs and NSOEs, the tax burden is lower when they are taxed under the Spanish special taxation regime for small- and medium-sized enterprises. In short, company characteristics are more important in private ownership firms, in which almost all the variables considered have certain repercussions. This result may be because private ownership companies devote more resources to tax avoidance, and their fiscal strategy may determine their economic and financial structure. However, SOEs present significantly lower effective tax rates than NSOEs, probably because of the tax incentives that the law provides for them to support their sustainability.

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Section: Introductionmentioning

confidence: 99%

Influence of Ownership Structure on the Determinants of Effective Tax Rates of Spanish Companies

2019

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“…Penelitian oleh Khurana & Moser (2009) menunjukkan bahwa penghindaran pajak lebih agresif untuk dilakukan oleh perusahaan dengan persentase kepemilikan institusional yang tinggi akibat adanya tujuan pihak institusi untuk memaksimalkan laba dan arus kas setelah pajak. Bird & Karolyi (2017) menunjukkan bahwa dengan adanya kepemilikan institusional perusahaan mendapatkan pengetahuan yang lebih banyak mengenai perencanaan pajak, dan pengawasan ke perusahaan oleh pemegang saham institusional menjadi lebih ketat sehingga membuat perencanaan pajak perusahaan lebih efektif. Oleh karena itu, kepemilikan institusional berpengaruh positif terhadap penghindaran pajak, ditandai dengan hubungan yang negatif terhadap ETR (Khurana & Moser, 2009;Nugroho & Agustia, 2017;Huseynov & Klamm, 2012;Khan, Srinivasan, & Tan, 2017;Embree, 2012).…”

Section: Kepemilikan Institusionalunclassified

Analisis Pengaruh Tata Kelola Perusahaan Terhadap Aktivitas Penghindaran Pajak

Hendi

Fanny

2022

jesya

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This study aims to determine the effect of corporate governance consisting of executive compensation variables, executive characteristics or characteristics, company size, institutional ownership, the proportion of the board of commissioners, audit committee, and audit quality applied to companies against tax avoidance measures as measured by ETR (Effective Tax Rate). Stakeholders such as investors, potential investors, and especially company management also need to know the importance of applying good corporate governance to companies, especially to minimize tax avoidance. The sample of this study amounted to 607 secondary data from a total of 150 non-financial companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period and did not include companies engaged in property, real estate, and construction. Data were analyzed using panel regression method and processed using SPSS and Eviews software. The results obtained from this study shows that executive compensation variables and audit quality significantly positive effect on ETR or have a negative influence on tax avoidance. Variable executive characteristics and firm size have a significant negative effect on ETR or have a positive influence on tax avoidance. While other variables, namely institutional ownership, number of independent commissioners, and audit committees do not seem to have a significant effect on tax avoidance.

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“…The magnitude is on par with recent papers (Bird and Karolyi 2016;Chen et al 2016) that examine whether index funds, which allocate more of their funds to firms at the top of an index as compared to those at the bottom of the index, are associated with differences in tax avoidance for the firms above and below the cutoff. The economic magnitude of ETRs documented in these papers varies between 2 and 5 percent.…”

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confidence: 94%

“…Our knowledge of how shareholders and capital market players outside the firm affect tax planning is limited. Only until recently do studies start to investigate the role of hedge fund activism (Cheng et al 2012) and institutional investors (Khurana and Moser 2012;Chen et al 2016;Bird and Karolyi 2016) on tax-planning activities. We extend this literature by providing evidence that financial analysts in their role as financial intermediaries shape firms' tax-planning activities.…”

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confidence: 99%

Do Analysts Matter for Corporate Tax Planning? Evidence from a Natural Experiment

Chen

Chiu

Shevlin

2018

Contemporary Accting Res

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We exploit an exogenous shock to analyst coverage as a result of brokerage house mergers and closures to examine whether financial analysts influence the tax‐planning activities of the firms they cover. Using a difference‐in‐differences design, we find that, on average, firms affected by broker mergers and/or closures experience a reduction in their GAAP (cash) effective tax rates (ETR) of 2.5 percent (2.6 percent), relative to control firms, translating into average tax expense (cash tax) savings of $34 ($35) million. The treatment effect is more pronounced among firms with lower pre‐event analyst coverage. To explore how analysts affect tax planning, we further document that the treatment effect is greater among firms that lose an analyst who provided an implied ETR forecast in the past, suggesting that analysts influence tax planning via their tax‐specific research efforts. In addition, we find that after merger/closure, weakly governed firms increase their use of aggressive tax strategies, and financially distressed firms experience a larger reduction of cash effective tax rates, relative to control firms. Overall, we provide evidence that a shock to analyst coverage sufficiently changes the cost‐benefit trade‐off of tax planning.

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Governance and Taxes: Evidence from Regression Discontinuity (Retracted)

Cited by 84 publications

References 48 publications

Influence of Ownership Structure on the Determinants of Effective Tax Rates of Spanish Companies

Influence of Ownership Structure on the Determinants of Effective Tax Rates of Spanish Companies

Analisis Pengaruh Tata Kelola Perusahaan Terhadap Aktivitas Penghindaran Pajak

Do Analysts Matter for Corporate Tax Planning? Evidence from a Natural Experiment

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