Tax-strategy-related words, firm’s ability, and tax avoidance
International Journal of Disclosure and Governance - Trang 1-29 - 2023
Tóm tắt
This study examines the linguistic cues of tax avoidance in 10-K filings by constructing a tax-strategy-related (TSR) word list. We find a positive relationship between a firm's innate ability to avoid taxes, measured by the occurrence of TSR words, and the level of tax avoidance. Our results are robust across multiple measures and unaffected by firms' disclosure behavior or managerial ability. Additionally, investors negatively value the disclosure of TSR words in well-governed and less tax-avoiding firms.
Tài liệu tham khảo
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