Shareholder Litigation and Corporate Tax Avoidance

dc.contributor.author Wang, Bin
dc.contributor.author Yang, Rong
dc.contributor.author Arena, Matteo
dc.date.accessioned 2017-12-21T21:08:44Z
dc.date.available 2017-12-21T21:08:44Z
dc.date.issued 2017-08-31
dc.description Inquiries about this document can be made to <a href="mailto:HARC@hawaii.edu">HARC@hawaii.edu</a>
dc.description.abstract We examine whether the threat of shareholder litigation is systematically related to corporate tax avoidance activities. Using the Ninth Circuit Court of Appeals as a natural experiment, we find a strong negative effect of the threat of shareholder litigation on corporate tax avoidance, as captured by effective tax rates and book-tax differences. We find that the negative effect is mitigated by strong union power and geographic diversifications, whereas is intensified by high industry litigation risk. Collectively, this study sheds light on the “undersheltering puzzle” of corporate aggressive tax behavior.
dc.identifier.uri http://hdl.handle.net/10125/51958
dc.subject Shareholder Litigation
dc.subject Tax Avoidance
dc.subject Litigation risk
dc.title Shareholder Litigation and Corporate Tax Avoidance
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