, which can impose significant costs on firms. Thus, the extent to which tax avoidance increases firm risk is unclear. This …-samples of firms with differing relations between variables of interest. We provide evidence that 19 percent of our sample …

We investigate whether managers' personal political orientation helps explain tax avoidance at the firms they manage …. Results reveal the intriguing finding that, on average, firms with top executives who lean toward the Republican Party … actually engage in less tax avoidance than firms whose executives lean toward the Democratic Party. We also examine changes in …