In this study, I examine how firms change their tax avoidance and financial reporting following large tax settlements. I find that firms decrease tax avoidance following large settlements and this effect is concentrated among firms under-reserved for the settlement for financial accounting purposes. Additionally, my results suggest firms learn from tax examination resolutions in a way that affects their financial reporting over the tax account. Finally, I find that the effect of large settlements also spills over to firms within the same auditor network. This study provides context to the tax authority's efficacy in deterring tax avoidance and highlights its role in the financial reporting process.
| Identifer | oai:union.ndltd.org:arizona.edu/oai:arizona.openrepository.com:10150/555888 |
| Date | January 2015 |
| Creators | Finley, Andrew Rhodes |
| Contributors | Dhaliwal, Dan S., Dhaliwal, Dan S., Dhaliwal, Dan S., Vallabhajosyula, Shyam S., Drake, Katharine D. |
| Publisher | The University of Arizona. |
| Source Sets | University of Arizona |
| Language | en_US |
| Detected Language | English |
| Type | text, Electronic Dissertation |
| Rights | Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author. |
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