Media Coverage of Corporate Taxes

• 成果类型: Article
• 署名作者: Chen, Shannon; Schuchard, Kathleen; Stomberg, Bridget
• 署名单位: University of Arizona; University of Tennessee System; University of Tennessee Knoxville; Indiana University System; Indiana University Bloomington
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52342
• 发表日期: 2019
• 页码: 83-116
• 关键词: EMPIRICAL-EXAMINATION; reputational costs; avoidance evidence; earnings; CONSEQUENCES; Managers; press; FIRMS; incentives; liability

摘要

Managers express growing concern over media coverage of corporate taxes, yet no large-sample empirical study examines this phenomenon. As a first step to fill this void, we identify factors associated with the likelihood and negative tone of media tax coverage and examine firms' tax avoidance behavior following media tax coverage. We find the likelihood of media tax coverage is greater for firms with GAAP effective tax rates below the top U.S. statutory rate of 35 percent and for firms with greater visibility. The degree of negative tone is increasing in cash tax avoidance and firm size. We also find evidence of more frequent and more negative tax coverage during economic recessions. We find no evidence that firms reduce their tax avoidance following media coverage. Although our analyses are subject to limitations, our results suggest the media may not have the same influence over corporate tax policy as other external stakeholders.