Visualization of World-Scale Evidence on Tax Avoidance and Tax Rate Convergence

24 Pages Posted: 14 Feb 2020

See all articles by Chika Saka

Chika Saka

Kwansei Gakuin University

Tomoki Oshika

Waseda University

Masayuki Jimichi

Kwansei Gakuin University - School of Business Administration

Date Written: January 31, 2018

Abstract

Purpose

Firm tax avoidance has gathered substantial public attention in both practice and academic literature. We study tax avoidance among firms and countries using the visualization of accounting data of all of listed firms from 148 countries from 1985 to 2015.

Design/methodology/approach

Over 30 years of financial data on all listed firms from 148 countries and provides world-scale evidence on tax avoidance and tax rates convergence. The research design uses exploratory data analysis and reproducible research using data visualization tools, namely, R with dplyr, ggplot2, and googleVis (Geo Chart and Motion Chart).

Findings

We provide world-scale evidence on (1) firms’ tax avoidance, showing a non-random distribution of firms’ effective tax rates and return on assets using visualization from 1985 to 2015, and (2) downward convergence trend of firms’ effective and statutory tax rates among 58 countries over the past 20 years.

Originality/Value

This study makes two key contributions to the literature. First, this is the first to provide world-scale evidences on the tax avoidance and convergence trends of tax rates. Second, we use the visualization method, which allows easily understanding of what is happening around the world. Research Implications

Our results highlight the tax avoidance issue, which can no longer be ignored, and facilitate a collaborative discussion between non-specialists and professionals with objective evidence from visualization.

Keywords: Tax Avoidance, Convergence, Data Visualization, Exploratory Data Analysis

Suggested Citation

Saka, Chika and Oshika, Tomoki and Jimichi, Masayuki, Visualization of World-Scale Evidence on Tax Avoidance and Tax Rate Convergence (January 31, 2018). Available at SSRN: https://ssrn.com/abstract=3115022 or http://dx.doi.org/10.2139/ssrn.3115022

Chika Saka (Contact Author)

Kwansei Gakuin University ( email )

1-1-155, Uegahara, Nishinomiya
Hyogo, 662-8501
Japan

Tomoki Oshika

Waseda University ( email )

1-6-1
Nishi-Waseda
Shinjuku-ku, TOKYO 169-8050
Japan

Masayuki Jimichi

Kwansei Gakuin University - School of Business Administration ( email )

1-155 Uegahara-1bancho
Nishinomiya, Hyogo 662-8501
Japan

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
70
Abstract Views
708
rank
351,876
PlumX Metrics