Tax Havens and Disclosure Aggregation
44 Pages Posted: 4 Apr 2014 Last revised: 15 Mar 2017
There are 2 versions of this paper
Tax Havens and Disclosure Aggregation
Tax Havens and Disclosure Aggregation
Date Written: March 15, 2017
Abstract
Multinational firms have been accused by politicians, regulators, and citizen groups of shifting profits to low-tax geographic areas. We present evidence that multinational firms with tax-haven operations tend to aggregate their geographic disclosures to a greater extent. The results are consistent with managers attempting to avoid criticism by reducing the transparency of their tax-avoidance activities. We find these results to be stronger for larger firms with higher political costs and for firms in natural-resources industries, in retail industries, or with low competition. The evidence is relevant to policy makers and others interested in multinational firms’ financial reporting and tax activities.
Keywords: Tax havens, aggregation, disclosure quality, tax avoidance, segment disclosure, Exhibit 21
JEL Classification: H25, H26, F23, F30, M41, G30
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Earnings Management: New Evidence Based on Deferred Tax Expense
By John D. Phillips, Morton Pincus, ...
-
An Evaluation of Alternative Measures of Corporate Tax Rates
-
By Merle Erickson, Michelle Hanlon, ...
-
The Relation between Financial and Tax Reporting Measures of Income
By Gil B. Manzon, Jr. and George Plesko
-
What Can We Infer About a Firm's Taxable Income from its Financial Statements?