In this study, we examine whether tax avoidance affects firm-level external financing choices. We hypothesize that firms marginally choose equity over debt because tax avoidance generates incremental cash flows but is likely risky. Consequently, we predict that tax avoidance induces a relative...

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 whistleblower incentives to corporate income tax whistleblowers. We identify treated firms (firms exposed to...

We examine whether employee perceptions of managers and firms fall following tax avoidance news. Using S&P 500 firms and generalized difference-in-differences specifications, we find that tax avoidance news negatively affects employee perceptions of managers and firms. In cross-sectional tests,...