Labor unions and tax aggressiveness

• 成果类型: Article
• 署名作者: Chyz, James A.; Leung, Winnie Siu Ching; Li, Oliver Zhen; Rui, Oliver Meng
• 署名单位: University of Tennessee System; University of Tennessee Knoxville; University of Hong Kong; National University of Singapore; China Europe International Business School
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.01.012
• 发表日期: 2013
• 页码: 675-698
• 关键词: Labor union; Tax aggressiveness

摘要

We examine the impact of unionization on firms' tax aggressiveness. We find a negative association between firms' tax aggressiveness and union power and a decrease in tax aggressiveness after labor union election wins. This relation is consistent with labor unions influencing managers' in one, or both, of two ways: (1) constraining managers' ability to invest in tax aggressiveness through increased monitoring: or (2) decreasing returns to tax aggressiveness that arise from unions' rent seeking behavior. We also find preliminary evidence that the market expects these reductions around union elections and discounts firms that likely add shareholder value via aggressive tax strategies. (C) 2013 Elsevier B.V. All rights reserved.