We investigate a previously overlooked type of non-tax cost associated with tax avoidance: the potential loss of earnings informativeness. Expected benefits from corporate tax planning include positive effects on after-tax earnings and an increase in firm value. However, tax avoidance can entail...

Original Paper is available at: "https://ssrn.com/abstract=2610826" https://ssrn.com/abstract=2610826These internet appendices provide supplementary analyses and robustness tests for the paper “How does quasi-indexer ownership affect corporate tax planning?”

We examine the relation between client tax aggressiveness and auditor's resignation decision. Consistent with the agency view of tax avoidance which suggests that client tax aggressiveness can increase litigation and reputational risk to auditors and increase the potential conflict with...