ABSTRACT In this study, we examine the effect of increased tax transparency on planning behavior European banks. 2014, Union introduced public country‐by‐country reporting requirements to banking industry. Treating new requirement as an exogenous shock, find limited evidence consistent with a decline in income shifting by banks' financial affiliates post‐adoption period (starting from 2015). We do not, however, robust significant change consolidated book effective rates among affected Our...

ABSTRACT We examine whether employee perceptions of managers and firms fall following tax avoidance news. Using S&P 500 generalized difference-in-differences specifications, we find that news negatively affects firms. In cross-sectional tests, (1) in consumer-facing industries suffer larger employee-related perception changes from compared to other firms, (2) well-performing their face smaller than managers. Overall, our results are consistent with affecting

ABSTRACT Existing studies find that tax avoidance affects the cost of debt and equity in different ways but does not examine consequences these associations. This study examines a direct important implication effect on equity: capital structure choices. Using logit regressions, we is positively associated with probability issuing rather than debt. We use mediation (i.e., path) analyses to provide evidence effects overall risky pre-corporate partially explain our main effects. For stronger...

In this study, we provide evidence on the effects of state tax whistleblower laws. We exploit a novel 2010 amendment to New York’s False Claims Acts (FCA) that explicitly extended incentives corporate income whistleblowers. identify treated firms (firms exposed FCA) using establishment-level data and descriptive analyses. Using sample York neighboring states, find FCA reduced avoidance. cross-sectional tests, are increasing in grant fewer employee stock options industry regulation,...

We examine whether employee perceptions of managers and firms fall following tax avoidance news. Using S&P 500 generalized difference-in-differences specifications, we find that news negatively affects firms. In cross-sectional tests, (1) in consumer-facing industries suffer larger employee-related perception changes from compared to other firms, (2) well-performing their face smaller than managers. Overall, our results are consistent with affecting

Existing studies find that tax avoidance affects the cost of debt and equity in differentways but does not examine consequences these associations. This studyexamines a direct important implication effect on ofdebt equity: capital structure choices. Using logit regressions, we taxavoidance is positively associated with probability issuing rather thandebt. We use mediation (i.e., path) analyses to provide evidence effects ofoverall risky pre-corporate anddebt partially explain our main...

In this study, we provide evidence on the deterrence effects of state tax whistleblower laws. We exploit a novel 2010 amendment to New York's False Claims Acts that explicitly extended incentives corporate income whistleblowers. identify treated firms (firms exposed FCA) using establishment-level data and descriptive analyses. Using traditional difference-in-differences design, find FCA reduced avoidance, consistent with benefits. cross-sectional tests, are increasing in grant fewer employee...