Corporate Tax Avoidance and Sales: Microevidence and Aggregate Implications

• 成果类型: Article; Early Access
• 署名作者: Martin, Julien; Parenti, Mathieu; Toubal, Farid
• 署名单位: University of Quebec; University of Quebec Montreal; Centre for Economic Policy Research - UK; Paris School of Economics; INRAE; Leibniz Association; Ifo Institut; Universite PSL; Universite Paris-Dauphine
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2024.05773
• 发表日期: 2025
• 关键词: Tax avoidance; distorted sales; Industry concentration; IRS audit probability

摘要

This paper examines the effect of corporate tax avoidance (CTA) on U.S. firm-level sales and its aggregate implications. In theory, CTA gives a competitive edge to avoiding firms, which affects the distribution of sales in the economy. In practice, we find a causal impact of CTA on firm-level sales using a broad set of measures of tax avoidance and different identification strategies. Combining microestimates and the model, we assess how changes in CTA over the past two decades have shaped the distribution of sales across U.S. industries. Although the effects vary by sector, rising CTA among large firms has reinforced their dominant positions, contributing to increased concentration, in several key industries.