Endogeneity and the economic consequences of tax avoidance

• 成果类型: Article
• 署名作者: Dyreng, Scott D.; Hills, Robert W.; Lewellen, Christina M.; Lindsey, Bradley P.
• 署名单位: Duke University; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; North Carolina State University; Utah System of Higher Education; Utah State University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.13017
• 发表日期: 2025
• 页码: 702-730
• 关键词: CORPORATE GOVERNANCE; earnings; FIRMS; cost; cash; Aggressiveness; INFORMATION; Diversion; accruals; RISK

摘要

Academic research investigating the economic consequences of tax avoidance is almost always interested in the consequences of intentional, deliberate actions undertaken to reduce taxes relative to income. Therefore, it is crucial that such research distinguishes between intentional and incidental tax avoidance, since failure to do so can create endogeneity concerns and lead to incomplete and incorrect economic inferences. In this paper, we first develop a framework that conceptually defines and distinguishes between intentional and incidental tax avoidance. We highlight that the endogeneity problem arises because intentional tax avoidance is not directly observable. We consider two approaches to mitigating endogeneity concerns and apply these approaches by reexamining two influential studies that investigate the economic consequences of tax avoidance. We show how controlling for past accounting losses eliminates the effect of tax avoidance on credit spreads (Hasan et al. 2014, Journal of Financial Economics, 113(1), 109-130) and how using an instrumental variables approach changes the sign of the relation between tax sheltering and stock price crash risk (Kim et al., 2011, Journal of Financial Economics, 100(3), 639-662). Overall, our paper punctuates the importance of both (1) conceptually distinguishing between incidental and intentional tax avoidance and (2) econometrically addressing the challenges that arise when empirical differentiation between incidental and intentional tax avoidance is important to the research question. Endog & eacute;n & eacute;it & eacute; et cons & eacute;quences & eacute;conomiques de l'& eacute;vasion fiscaleLes recherches universitaires portant sur les cons & eacute;quences & eacute;conomiques de l'& eacute;vasion fiscale s'int & eacute;ressent presque toujours aux cons & eacute;quences des actions intentionnelles et d & eacute;lib & eacute;r & eacute;es entreprises pour r & eacute;duire les imp & ocirc;ts par rapport aux revenus. Il est donc essentiel que ces recherches fassent la distinction entre l'& eacute;vasion fiscale intentionnelle et l'& eacute;vasion fiscale fortuite, faute de quoi elles risquent de poser des probl & egrave;mes d'endog & eacute;n & eacute;it & eacute; et d'aboutir & agrave; des conclusions & eacute;conomiques incompl & egrave;tes et erron & eacute;es. Dans cet article, nous d & eacute;veloppons tout d'abord un cadre qui d & eacute;finit et distingue conceptuellement l'& eacute;vasion fiscale intentionnelle de l'& eacute;vasion fiscale fortuite. Nous soulignons que le probl & egrave;me de l'endog & eacute;n & eacute;it & eacute; se pose parce que l'& eacute;vasion fiscale intentionnelle n'est pas directement observable. Nous envisageons deux approches pour att & eacute;nuer les probl & egrave;mes d'endog & eacute;n & eacute;it & eacute; et les appliquons en r & eacute;examinant deux & eacute;tudes influentes portant sur les cons & eacute;quences & eacute;conomiques de l'& eacute;vasion fiscale. Nous montrons comment la prise en compte des pertes comptables pass & eacute;es & eacute;limine l'effet de l'& eacute;vasion fiscale sur les & eacute;carts de cotation (Hasan et al. 2014) et comment l'utilisation d'une approche fond & eacute;e sur des variables instrumentales modifie le signe de la relation entre l'& eacute;vasion fiscale et le risque de krach boursier (Kim et al. 2011). Dans l'ensemble, notre article ponctue l'importance & agrave; la fois (1) de distinguer conceptuellement l'& eacute;vasion fiscale fortuite et intentionnelle et (2) d'aborder & eacute;conom & eacute;triquement les d & eacute;fis qui se posent lorsque la diff & eacute;renciation empirique entre l'& eacute;vasion fiscale fortuite et intentionnelle est importante pour la question de recherche.