Distracted institutional shareholders and corporate tax avoidance
Nonconforming tax avoidance (i.e., strategies that reduce taxable but not book income) has been extensively studied in accounting research, yet conforming tax avoidance (i.e., strategies that reduce taxable and book income) receives scant attention. To fill the void, I examine institutional sharehol...
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis-Doctor of Philosophy |
| Language: | English |
| Published: |
Nanyang Technological University
2022
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/154754 |
| _version_ | 1826118880721895424 |
|---|---|
| author | Yu, Hang |
| author2 | Tong Yen Hee |
| author_facet | Tong Yen Hee Yu, Hang |
| author_sort | Yu, Hang |
| collection | NTU |
| description | Nonconforming tax avoidance (i.e., strategies that reduce taxable but not book income) has been extensively studied in accounting research, yet conforming tax avoidance (i.e., strategies that reduce taxable and book income) receives scant attention. To fill the void, I examine institutional shareholder distraction as one determinant of nonconforming and conforming tax avoidance. Using exogenous shocks to unrelated parts of institutional shareholders’ portfolios, I find that institutional shareholder distraction has a negative (null) effect on conforming (nonconforming) tax avoidance. Consistent with institutional shareholder distraction exacerbating agency problems, its negative effect on conforming tax avoidance is alleviated by board monitoring. I further identify the effort aversion channel by showing that this negative effect is mitigated by managerial ability. My study establishes one corporate tax avoidance determinant that only affects conforming tax avoidance, thereby underscoring the importance of simultaneous examination of nonconforming and conforming tax avoidance. |
| first_indexed | 2024-10-01T04:50:46Z |
| format | Thesis-Doctor of Philosophy |
| id | ntu-10356/154754 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T04:50:46Z |
| publishDate | 2022 |
| publisher | Nanyang Technological University |
| record_format | dspace |
| spelling | ntu-10356/1547542024-01-12T10:17:28Z Distracted institutional shareholders and corporate tax avoidance Yu, Hang Tong Yen Hee Nanyang Business School Kevin Koh ayhtong@ntu.edu.sg Business::Accounting::Tax Business::Accounting::Corporate governance Nonconforming tax avoidance (i.e., strategies that reduce taxable but not book income) has been extensively studied in accounting research, yet conforming tax avoidance (i.e., strategies that reduce taxable and book income) receives scant attention. To fill the void, I examine institutional shareholder distraction as one determinant of nonconforming and conforming tax avoidance. Using exogenous shocks to unrelated parts of institutional shareholders’ portfolios, I find that institutional shareholder distraction has a negative (null) effect on conforming (nonconforming) tax avoidance. Consistent with institutional shareholder distraction exacerbating agency problems, its negative effect on conforming tax avoidance is alleviated by board monitoring. I further identify the effort aversion channel by showing that this negative effect is mitigated by managerial ability. My study establishes one corporate tax avoidance determinant that only affects conforming tax avoidance, thereby underscoring the importance of simultaneous examination of nonconforming and conforming tax avoidance. Doctor of Philosophy 2022-01-07T00:26:55Z 2022-01-07T00:26:55Z 2021 Thesis-Doctor of Philosophy Yu, H. (2021). Distracted institutional shareholders and corporate tax avoidance. Doctoral thesis, Nanyang Technological University, Singapore. https://hdl.handle.net/10356/154754 https://hdl.handle.net/10356/154754 10.32657/10356/154754 en This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). application/pdf Nanyang Technological University |
| spellingShingle | Business::Accounting::Tax Business::Accounting::Corporate governance Yu, Hang Distracted institutional shareholders and corporate tax avoidance |
| title | Distracted institutional shareholders and corporate tax avoidance |
| title_full | Distracted institutional shareholders and corporate tax avoidance |
| title_fullStr | Distracted institutional shareholders and corporate tax avoidance |
| title_full_unstemmed | Distracted institutional shareholders and corporate tax avoidance |
| title_short | Distracted institutional shareholders and corporate tax avoidance |
| title_sort | distracted institutional shareholders and corporate tax avoidance |
| topic | Business::Accounting::Tax Business::Accounting::Corporate governance |
| url | https://hdl.handle.net/10356/154754 |
| work_keys_str_mv | AT yuhang distractedinstitutionalshareholdersandcorporatetaxavoidance |