Cookies

We use cookies to ensure that we give you the best experience on our website. By continuing to browse this repository, you give consent for essential cookies to be used. You can read more about our Privacy and Cookie Policy.


Durham Research Online
You are in:

The impact of corporate tax avoidance on analyst coverage and forecasts.

He, G. and Ren, M. and Taffler, R. (2020) 'The impact of corporate tax avoidance on analyst coverage and forecasts.', Review of quantitative finance and accounting., 54 (2). pp. 447-477.

Abstract

Corporate tax avoidance is likely to be associated with a high level of earnings management and with high financial opacity in the time-series. On this basis, we hypothesize that analyst coverage is negatively associated with corporate tax avoidance. Our results confirm this conjecture, and are robust to using a firm-fixed-effects model and a quasi-natural experiment to control for potential endogeneity. Additional analysis shows that analyst coverage is negatively related to tax risk, but there is no evidence that the informativeness of, or errors in, analyst forecasts are associated with tax avoidance. Overall, our study advances understanding of the implications of corporate tax avoidance for analyst behavior.

Item Type:Article
Full text:Publisher-imposed embargo
(AM) Accepted Manuscript
First Live Deposit - 14 February 2019
File format - PDF
(1470Kb)
Full text:(VoR) Version of Record
Available under License - Creative Commons Attribution.
Download PDF (Advance online version)
(854Kb)
Full text:(VoR) Version of Record
Available under License - Creative Commons Attribution.
Download PDF
(890Kb)
Status:Peer-reviewed
Publisher Web site:https://doi.org/10.1007/s11156-019-00795-7
Publisher statement:This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Record Created:14 Feb 2019 12:28
Last Modified:31 Jan 2020 09:30

Social bookmarking: del.icio.usConnoteaBibSonomyCiteULikeFacebookTwitterExport: EndNote, Zotero | BibTex
Look up in GoogleScholar | Find in a UK Library