Corporate tax avoidance and stock price crash risk: Firm-level analysis

Ai, 2003, Interaction terms in logit and probit models, Economics Letters, 80, 123, 10.1016/S0165-1765(03)00032-6 Allison, 2005 Ball, 2001, Infrastructure requirements for an economically efficient system of public financial reporting and disclosure, Brookings-Wharton Papers on Financial Services, 2, 127, 10.1353/pfs.2001.0002 Ball, 2009, Market and political/regulatory perspectives on the recent accounting scandals, Journal of Accounting Research, 47, 277, 10.1111/j.1475-679X.2009.00325.x Blaylock, B., Shevlin, T., Wilson, R., 2010. Tax avoidance, large positive book-tax differences, and earnings persistence. Unpublished Working Paper, University of Washington. Bleck, 2007, Market transparency and the accounting regime, Journal of Accounting Research, 45, 229, 10.1111/j.1475-679X.2007.00231.x Cameron, A., Gelbach, J., Miller, D., 2009. Robust inference with multi-way clustering. NBER Technical Working Paper No. 327. Chen, 2001, Forecasting crashes: trading volume, past returns, and conditional skewness in stock prices, Journal of Financial Economics, 61, 345, 10.1016/S0304-405X(01)00066-6 Chen, 2005, Internal control versus external manipulation: a model of corporate income tax evasion, The RAND Journal of Economics, 36, 151 Chen, 2010, Are family firms more tax aggressive than non-family firms?, Journal of Financial Economics, 95, 41, 10.1016/j.jfineco.2009.02.003 Crocker, 2005, Corporate tax evasion with agency costs, Journal of Public Economics, 89, 1593, 10.1016/j.jpubeco.2004.08.003 Dechow, 2002, The quality of accruals and earnings: the role of accrual estimation errors, The Accounting Review, 77, 35, 10.2308/accr.2002.77.s-1.35 Dechow, P.M., Ge, W., Larson, C.R., Sloan, R.G. Predicting material accounting misstatements. Contemporary Accounting Research, forthcoming. Dechow, 1995, Detecting earnings management, The Accounting Review, 70, 193 Desai, 2005, The degradation of reported corporate profits, Journal of Economic Perspectives, 19, 171, 10.1257/089533005775196705 Desai, 2006, Corporate tax avoidance and high-powered incentives, Journal of Financial Economics, 79, 145, 10.1016/j.jfineco.2005.02.002 Desai, 2009, Corporate tax avoidance and firm value, Review of Economics and Statistics, 91, 537, 10.1162/rest.91.3.537 Desai, 2009, Earnings management, corporate tax shelters, and book-tax alignment, National Tax Journal, 62, 169, 10.17310/ntj.2009.1.08 Desai, 2007, Theft and taxes, Journal of Financial Economics, 84, 591, 10.1016/j.jfineco.2006.05.005 Dimson, 1979, Risk measurement when shares are subject to infrequent trading, Journal of Financial Economics, 7, 197, 10.1016/0304-405X(79)90013-8 Dyreng, 2008, Long-run corporate tax avoidance, The Accounting Review, 83, 61, 10.2308/accr.2008.83.1.61 Frank, 2009, Tax reporting aggressiveness and its relation to aggressive financial reporting, The Accounting Review, 84, 467, 10.2308/accr.2009.84.2.467 Gompers, 2003, Corporate governance and equity prices, Quarterly Journal of Economics, 118, 107, 10.1162/00335530360535162 Gow, 2010, Correcting for cross-sectional and time-series dependence in accounting research, The Accounting Review, 85, 483, 10.2308/accr.2010.85.2.483 Graham, 2003, Taxes and corporate finance: a review, Review of Financial Studies, 16, 1075, 10.1093/rfs/hhg033 Graham, 2006, Tax shelters and corporate debt policy, Journal of Financial Economics, 81, 563, 10.1016/j.jfineco.2005.09.002 Hanlon, 2005, The persistence and pricing of earnings, accruals, and cash flows when firms have large book-tax differences, The Accounting Review, 80, 137, 10.2308/accr.2005.80.1.137 Hanlon, 2010, A review of tax research, Journal of Accounting and Economics, 50, 127, 10.1016/j.jacceco.2010.09.002 Hanlon, 2009, What does tax aggressiveness signal? Evidence from stock price reactions to news about tax shelter involvement, Journal of Public Economics, 93, 126, 10.1016/j.jpubeco.2008.09.004 Hribar, 2002, Errors in estimating accruals: implications for empirical research, Journal of Accounting Research, 40, 105, 10.1111/1475-679X.00041 Hutton, 2009, Opaque financial reports, R2, and crash risk, Journal of Financial Economics, 94, 67, 10.1016/j.jfineco.2008.10.003 Jin, 2006, R2 around the world: new theory and new tests, Journal of Financial Economics, 79, 257, 10.1016/j.jfineco.2004.11.003 Kim, J.-B., Zhang, L., 2010. Does accounting conservatism reduce stock price crash risk? Firm-level evidence. Unpublished Working Paper, City University of Hong Kong. Kothari, 2009, Do managers withhold bad news?, Journal of Accounting Research, 47, 241, 10.1111/j.1475-679X.2008.00318.x Lennox, C., Lisowsky, P., Pittman, J., 2010. The role of tax aggressiveness in the incidence of accounting fraud. Unpublished Working Paper, Nanyang Technological University. Lev, 2004, Taxable income, future earnings, and equity values, The Accounting Review, 79, 1039, 10.2308/accr.2004.79.4.1039 Lisowsky, 2010, Seeking shelter: empirically modeling tax shelters using financial statement information, The Accounting Review, 85, 1693, 10.2308/accr.2010.85.5.1693 Lisowsky, P., Robinson, L., Schmidt, A.P., 2009. An examination of FIN 48: tax shelters, auditor independence, and corporate governance. Unpublished Working Paper, Tuck School of Business. Manzon, 2002, Relation between financial and tax reporting measures of income, The Tax Law Review, 55, 175 Mills, 1998, Book-tax differences and Internal Revenue Service adjustments, Journal of Accounting Research, 36, 343, 10.2307/2491481 Norton, 2004, Computing interaction effects and standard errors in logit and probit models, Stata Journal, 4, 154, 10.1177/1536867X0400400206 Palepu, 2003, The fall of Enron, Journal of Economic Perspectives, 17, 3, 10.1257/089533003765888403 Pan, 2002, The jump-risk premia implicit in options: evidence from an integrated time-series study, Journal of Financial Economics, 63, 3, 10.1016/S0304-405X(01)00088-5 Petersen, 2009, Estimating standard errors in finance panel data sets: comparing approaches, Review of Financial Studies, 22, 435, 10.1093/rfs/hhn053 Phillips, 2003, Corporate tax-planning effectiveness: the role of compensation-based incentives, The Accounting Review, 78, 847, 10.2308/accr.2003.78.3.847 Richardson, 2005, Accrual reliability, earnings persistence and stock prices, Journal of Accounting and Economics, 39, 437, 10.1016/j.jacceco.2005.04.005 Roychowdhury, 2006, Earnings management through real activities manipulation, Journal of Accounting and Economics, 42, 335, 10.1016/j.jacceco.2006.01.002 Shackelford, 2001, Empirical tax research in accounting, Journal of Accounting and Economics, 31, 321, 10.1016/S0165-4101(01)00022-2 Slemrod, 2004, The economics of corporate tax selfishness, National Tax Journal, 57, 877, 10.17310/ntj.2004.4.06 Sunder, S., 2010. Riding the accounting train: from crisis to crisis in eighty years. Presentation at the Conference on Financial Reporting, Auditing and Governance, Lehigh University, Bethlehem, PA. Taleb, 2007 US Congress, Joint Committee on Taxation, 2003 Wilson, 2009, An examination of corporate tax shelter participants, The Accounting Review, 84, 969, 10.2308/accr.2009.84.3.969 Yan, 2011, Jump risk, stock returns, and slope of implied volatility smile, Journal of Financial Economics, 99, 216, 10.1016/j.jfineco.2010.08.011 Yu, 2008, Analyst coverage and earnings management, Journal of Financial Economics, 88, 245, 10.1016/j.jfineco.2007.05.008