This study examines whether board-level codetermination (inclusion of employee representatives on the board) reduces aggressive financial reporting, i.e. tax aggressiveness and earnings management. Consistent with prior research, we expect employees to prefer lower tax aggressiveness and less...

We examine the impact of unionization on firms' tax aggressiveness. We find a negative association between firms' tax aggressiveness and union power and a decrease in tax aggressiveness after labor union election wins. This relation is consistent with labor unions influencing managers' in one,...