On the Determinants and Effects of Corporate Tax Transparency: Review of an Emerging Literature

125 Pages Posted: 25 Nov 2020

See all articles by Raphael Müller

Raphael Müller

University of Mannheim - Accounting and Taxation

Christoph Spengel

Centre for European Economic Research (ZEW)

Heiko Vay

University of Mannheim

Multiple version iconThere are 2 versions of this paper

Date Written: 2020

Abstract

In response to discussions about large multinational enterprises’ tax planning activities, legislators around the world have adopted numerous regulations to increase corporate tax transparency. New settings and datasets have spurred empirical research in recent years. Our paper presents a review of this emerging literature on corporate tax transparency. To this end, we first propose a framework to structure the diverse landscape of tax-related disclosures. Second, we elaborate on the conceptual underpinnings of tax transparency by drawing on established theories from financial accounting and CSR reporting research. Third, we survey empirical evidence on corporate tax transparency. We classify the findings into (i) determinants of firms’ tax disclosure decisions, (ii) informativeness of different kinds of tax-related disclosure, and (iii) effects of increased tax transparency on firms and their stakeholders. Finally, we synthesize the main inferences and offer suggestions for future research.

Keywords: tax transparency; tax disclosure; tax planning; literature review

JEL Classification: F23; G38; H25, H26; M14; M41

Suggested Citation

Müller, Raphael and Spengel, Christoph and Vay, Heiko, On the Determinants and Effects of Corporate Tax Transparency: Review of an Emerging Literature (2020). ZEW - Centre for European Economic Research Discussion Paper No. 20-063, Available at SSRN: https://ssrn.com/abstract=3736747 or http://dx.doi.org/10.2139/ssrn.3736747

Raphael Müller (Contact Author)

University of Mannheim - Accounting and Taxation ( email )

Mannheim, 68131
Germany

Christoph Spengel

Centre for European Economic Research (ZEW) ( email )

D-68161 Mannheim
Germany

Heiko Vay

University of Mannheim ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

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