Does index addition affect corporate tax avoidance?
| Autor: | Sabuhi Sardarli, Fariz Huseynov, Wei Zhang |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
040101 forestry
Economics and Econometrics Double taxation 050208 finance Index (economics) Economic policy Strategy and Management Corporate governance 05 social sciences 04 agricultural and veterinary sciences Monetary economics Affect (psychology) Tax avoidance International taxation 0502 economics and business Deferred tax 0401 agriculture forestry and fisheries Business Business and International Management Finance Corporate tax |
| Zdroj: | Journal of Corporate Finance. 43:241-259 |
| ISSN: | 0929-1199 |
| DOI: | 10.1016/j.jcorpfin.2017.01.008 |
| Popis: | We examine corporate tax avoidance of firms around addition to the S&P 500 index. We find that corporate tax avoidance for firms at high levels of tax avoidance decreases after index addition, whereas tax avoidance for firms at low levels of tax avoidance increases after index addition. We disentangle the impact of changing governance practices from that of declining investment opportunities. Our findings indicate that the changes in tax avoidance can be attributed to improving governance practices, specifically higher institutional ownership and executive compensations, and this impact is above and beyond the changes in growth opportunities of index firms. |
| Databáze: | OpenAIRE |
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