This study investigates whether loosened monitoring from institutional investors affects firm tax planning decisions. We take advantage of shocks to unrelated parts of institutional investors’ portfolios and examine how plausibly exogenous changes in monitoring from institutional investors...

There are competing arguments and mixed prior evidence on whether firms that are aggressive in their financial reporting exhibit more or less tax aggressiveness. Our research contributes to resolving this issue by examining the association between aggressive tax reporting and the incidence of...

We extend research on the determinants of corporate tax avoidance to include the role of Internal Revenue Service (IRS) monitoring. Our evidence from large samples implies that U.S. public firms undertake less aggressive tax positions when tax enforcement is stricter. Reflecting its first-order...

Employing an international sample of 29,889 firms across 67 economies spanning 2007 to 2018, this paper investigates the impact of climate change on corporate tax avoidance. Empirical results show that higher climate risk is associated with higher tax avoidance. Further analysis suggests that...

We investigate the link between foreign competition and corporate tax planning. We find that a one standard deviation increase in import competition leads to a reduction of 9% in firms’ effective tax rates relative to standard levels. Further, we document that our evidence is robust to a...