News Media Coverage of Corporate Tax Avoidance and Corporate Tax Reporting

Lee, Soojin

doi:10.2139/ssrn.2603344

Cited by 5 publications

(3 citation statements)

References 38 publications

(41 reference statements)

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“…Both of these theories are related to tax avoidance issues and are considered appropriate for review. By considering the significance of the review-based study, different authors have carried out the review-based study on tax avoidance behavior from different perspectives such as tax planning behavior of multinational enterprises (Cooper & Nguyen, 2020; Wang, Xu, Sun, & Cullinan, 2020), family firms (Khelil & Khlif, 2022), determinants (Sritharan, Salawati, Sharon, & Syubaili, 2022), proxies (Lee et al. , 2015), institutional ownership (Putra et al.…”

Section: Theories Of Corporate Tax Avoidancementioning

confidence: 99%

Corporate tax avoidance: a systematic literature review and future research directions

Duhoon,

Singh

2023

LBSJMR

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PurposeThe increased interest among academicians to explore more about tax management behavior is evident in the literature on corporate tax avoidance. This paper aims to illustrate the multiple aspects that influence the tax avoidance behavior of corporations and its impacts through the systematic review method.Design/methodology/approachThis study used “Tax Avoidance” OR “Tax Aggressiveness” OR “Tax Planning” as search strings to extract the relevant literature from the Scopus database. This study is a comprehensive analysis of existing literature on corporate tax avoidance behavior. Further, the keyword network analysis has been used to find out the most explored and dry research areas related to corporate tax avoidance behavior using VOSviewer software.FindingsThe study finds that taxation decision is an important managerial decision. Managers adopt tax avoidance tactics to boost postax profits to meet the shareholders’ expectations, particularly of risk-averse shareholders, and sometimes for their benefit also. With this, this study also finds that firms’ characteristics, political connections and corporate social responsibility activities also impact taxation decisions. In addition, the study identifies that tax-avoiding behavior has a contradictory impact on firm value, market growth and corporate transparency disclosure decisions.Research limitations/implicationsThe study assists the researchers by providing a brief overview of tax avoidance behavior, for corporates in understanding the implications of tax avoidance, and for policymakers to fix the taxation loopholes and bring necessary tax reforms.Originality/valueThis study adds to the existing literature by providing a thorough overview of theories, determinants and outcomes of corporate tax avoidance behavior.

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Section: Theories Of Corporate Tax Avoidancementioning

confidence: 99%

Corporate tax avoidance: a systematic literature review and future research directions

Duhoon,

Singh

2023

LBSJMR

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“…Their results are consistent with greater analyst coverage increasing the visibility of aggressive tax planning behaviour. Additionally, Lee (2015) finds that firms exposed to media coverage of tax avoidance are less likely to make tax-related disclosures. Previous results are consistent with firms avoiding discussing the most relevant tax issues when they are at the centre of media attention.…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Media Coverage and corporate tax burden in Spain

Sánchez

Alemán²,

Martín³

2023

Rev. contab.

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This research examines the relationship between media coverage and corporate tax burden in a sample of non-financial Spanish listed firms over the period 2003-2016. We show that media coverage reduces corporate tax burden. Our findings are consistent with a legitimation role for the media in continental Europe, such that firms subject to greater media attention show less need to resort to tax policy in order to legitimate corporate behaviour. Further analysis shows that companies subject to greater media coverage combined with a more negative tone of news show a higher tax burden. Thus, when the media threaten the legitimation of corporate behaviour, the firm will thus show a greater tendency to use tax policy as a way to restore corporate legitimation. Esta investigación analiza la relación entre la presión mediática y la estrategia fiscal corporativa en una muestra de empresas no financieras cotizadas españolas en el periodo 2003-2016. Mostramos que la cobertura mediática reduce la carga fiscal de las empresas. Los resultados se encuentran en consonancia con el papel de la legitimación en Europa Continental, de manera que las empresas que están sujetas a una mayor presión mediática muestran menos necesidad de recurrir a la política fiscal para legitimar el comportamiento empresarial. Además, el estudio señala que las empresas sujetas a una mayor presión mediática combinada con un tono negativo de las noticias soportan una mayor carga fiscal. Así, cuando los medios de comunicación amenazan la legitimación de la actuación corporativa, las empresas muestran una mayor tendencia a utilizar la política fiscal como forma de restaurar su legitimación.

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“…In accounting studies, Gray and Laughlin maintained only a few years ago that 'taxation remains [here], as it does throughout much of accounting research, something of an un-explored desert ' (2012: 237). This situation has been changing since the financial crisis of 2007-2009, but tax issues are still rarely discussed in detail in corporate responsibility reports (Soederberg 2010, Lee 2015. Corporations tend to dislike the emergence of tax-related aspects of intra-firm planning in the corporate responsibility agenda.…”

Section: Corporations As Political Entities: Some Normative Issuesmentioning

confidence: 99%

Politics of Intra-firm Trade: Corporate Price Planning and the Double Role of the Arm’s Length Principle

Ylönen

Teivainen

2017

New Political Economy

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Intra-firm trade is an emerging issue. One of its key elements is the international shifting of profits, for example, through transfer pricing that big enterprises use to cross-subsidise their subsidiaries, often to avoid taxes. Accounting rules conceal much of the information about transfer pricing, reproducing secrecy and facilitating the use of administered prices. Given the prevalence of administered price setting, a significant amount of international trade cannot be meaningfully analysed as market transactions. This provokes questions about the validity of market assumptions in research on trade in particular and global capitalism more generally. Our specific contribution focuses on the role of the arm's length principle and the significance of cross-subsidisation and other forms of corporate planning in intra-firm trade. Under certain conditions, price planning by private corporations should be analysed as political rule within the economic sphere. Since the politics of the world economy is not merely related to governmental intervention, corporations should also be theorised as potentially political entities. Crossing the disciplinary boundaries between political economy and normative political theory, we suggest that the politicisation of intra-firm trade opens possibilities for creating more effective responses to price administration and for creating more democratic ways of governing the global economy.ARTICLE HISTORY

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News Media Coverage of Corporate Tax Avoidance and Corporate Tax Reporting

Cited by 5 publications

References 38 publications

Corporate tax avoidance: a systematic literature review and future research directions

Corporate tax avoidance: a systematic literature review and future research directions

Media Coverage and corporate tax burden in Spain

Politics of Intra-firm Trade: Corporate Price Planning and the Double Role of the Arm’s Length Principle

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