This paper uses international trade data to investigate the extent to which firms evade taxes on corporate profits. Discrepancies between reports by importers and exporters of the same trade flow are used to indirectly estimate the extent of evasion. When a tax rate changes in one country, firms...

Taxing multi-national corporations poses a challenge for national governments since multi-national corporations are often able to shift their incomes to low-tax jurisdiction using a variety of accounting techniques. Tax competition between national governments relies on companies making use of...

We investigate profit shifting by the largest and systemically relevant European multinational banks using new data made available through country-by-country reporting for the financial years 2014-2016. We capture tax incentives for income shifting using a multilateral tax differential between...

Dyreng et al. (2017) find that the effective tax rates for both foreign and domestic corporations have steadily declined over the past quarter century. However, contrary to conventional wisdom, the authors also find that U.S. multinational corporations do not have a tax-based cost advantage...

We examine the association between corporate tax aggressiveness and the profitability of insider trading under the assumption that insider trading profits reflect managerial opportunism. We document that insider purchase profitability, but not sales profitability, is significantly higher on...

Tax avoidance by major multinational enterprises (MNEs) has been extremely topical after the great financial crisis of 2008. As a result, the Organisation for Economic Cooperation and Development (OECD) in 2013 commenced a project known as the “base erosion and profit shifting” (BEPS)...

Corporate tax avoidance is likely to be associated with a high level of earnings management and with high financial opacity in the time-series. On this basis, we hypothesize that analyst coverage is negatively associated with corporate tax avoidance. Our results confirm this conjecture, and are...

The products and services of firms operating in sin industries (alcohol, tobacco, gaming, and firearms) run contrary to social norms and can produce significant negative externalities for society. As such, sin firms are at greater risk of incurring political costs in the form of additional...

Using the passage of Dodd-Frank as a quasi-natural experiment, we examine the effect of credit rating conservatism on corporate tax avoidance. We find that treatment firms engage in more tax-planning activities following Dodd-Frank than control firms. The results are robust to an alternative...