This study examines the nature of tax avoidance among loss firms. Using the methodology in Schwab, Stomberg, and Xia (2022) to identify and classify deliberate and intentional tax avoidance activities from companies’ effective tax rate reconciliations, we find that approximately 35 percent of...

Many studies use GAAP effective tax rates (ETR) as proxies for tax avoidance and rely on the maintained assumption that very low (high) ETRs represent the greatest (least) tax avoidance. We provide large-sample empirical evidence on how well ETRs capture cross-sectional differences in tax...

This study examines an adversarial attitude toward tax enforcement disclosed in income tax footnotes, where companies express disagreement with tax authorities or willingness to pursue litigation if issues under audit are unresolved. Specifically, we examine the determinants of an adversarial...

Research on the determinants of tax avoidance have relied on tests using GAAP and cash effective tax rates (ETRs) and total and permanent book-tax differences (BTDs). Two new proxies have emerged that overcome documented limitations of these proxies: one, developed by Henry and Sansing (2018),...

We provide evidence that tax avoidance is positively associated with firm value, and that the association is greater for income mobile firms. We classify firms with the ability to tax-efficiently structure global operations as "income mobile." The tax minimization strategies available to these...