Prior literature suggests that firms may bear reputational costs associated with corporate tax avoidance, which could in turn reduce the net present value of firms' tax planning strategies. Other research indicates that investors perceive corporate social responsibility (CSR) activities and tax...

This paper examines the relative valuation of alternative methods of tax avoidance. Prior studies find that firm value is positively associated with overall measures of tax avoidance; I extend this research by providing evidence that investors distinguish between methods of tax reduction in their...

This study examines how dimensions of culture influence variations in views about the link between corporate tax payments and corporate social responsibility (CSR). Using textual analysis and a newly-developed set of keywords unique to a tax setting, we analyze 4,438 CSR reports from 24...

This research examines spillover effects of tax avoidance on peers' firm value using the setting of the European Commission's state aid investigations of private letter rulings. We assume that news about a firm's tax avoidance strategies also reveals information about peers' tax avoidance...

The Loaded Leprechaun is a brewery/restaurant with locations around the U.S. At the end of their meal, patrons have the option to participate in the popular ‘‘Dollar Holler'' tradition, wherein they personalize a dollar bill and staple it to a surface in the restaurant. The case requires...

Both practitioners and academics are increasingly focusing their attention on the riskiness of firms' tax planning activities. In this study, we examine how external auditors respond to tax risk, measured using the volatility of firms' annual cash and GAAP effective tax rates. Consistent with...

We examine how investors value tax avoidance (measured as the level of cash ETRs) and tax risk (measured as the volatility of cash ETRs), and how these constructs interact to influence firm value. Our results suggest that investors positively value tax avoidance but negatively value tax risk...

We examine the effect of high quality information technology (IT) on corporate tax outcomes. Using a measure of IT quality constructed from rankings in InformationWeek magazine, we find that firms with high quality IT are able to achieve both lower and less volatile cash effective tax rates than...