publication . Research . 2016

Corporate tax minimization and stock price reactions

Blaufus, Kay; Möhlmann, Axel; Schwäbe, Alexander;
Open Access English
  • Published: 01 Jan 2016
  • Publisher: Berlin: Arbeitskreis Quantitative Steuerlehre (arqus)
Abstract
Tax minimization strategies may lead to significant tax savings, which could, in turn, increase firm value. However, such strategies are also associated with significant costs, such as expected penalties and planning, agency, and reputation costs. The overall impact of firms' tax minimization strategies on firm value is, therefore, unclear. To investigate whether corporate tax minimization increases firm value, we analyze the stock price reaction to news concerning corporate tax avoidance or evasion. Our hand-collected dataset includes 139 tax news items regarding listed German firms over the period from 2003 to 2014. In contrast to previous research, we explici...
Subjects
ACM Computing Classification System: ComputingMilieux_LEGALASPECTSOFCOMPUTINGComputingMilieux_GENERAL
free text keywords: G14, G30, H25, H26, tax avoidance, tax evasion, tax aggressiveness, tax risk, market reaction, event study, ddc:330
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Research . 2016
Provider: EconStor
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