skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Taxes and Financial Constraints: Evidence from Linguistic Cues

Journal of accounting research, 2015-09, Vol.53 (4), p.777-819 [Peer Reviewed Journal]

2015 The Accounting Research Center at the University of Chicago Booth School of Business ;Copyright ©, University of Chicago on behalf of the Accounting Research Center, 2015 ;ISSN: 0021-8456 ;EISSN: 1475-679X ;DOI: 10.1111/1475-679X.12081 ;CODEN: JACRBR

Full text available

Citations Cited by
  • Title:
    Taxes and Financial Constraints: Evidence from Linguistic Cues
  • Author: LAW, KELVIN K. F. ; MILLS, LILLIAN F.
  • Subjects: Annual reports ; Auditing ; Banks ; Corporate tax planning ; Disclosure ; Firm theory ; G30 ; H25 ; H26 ; Linguistics ; M41 ; negative words ; Personal aggression ; Studies ; Tax avoidance ; Tax increases ; Tax rates ; unrecognized tax benefits
  • Is Part Of: Journal of accounting research, 2015-09, Vol.53 (4), p.777-819
  • Description: Using a new measure of financial constraints based on firms' qualitative disclosures, we find that financially constrained firms—firms that use more negative words in their annual reports—pursue more aggressive tax planning strategies as evidenced by: (1) higher current and future unrecognized tax benefits, (2) lower short- and long-run current and future effective tax rates, (3) increase in tax haven usage for their material operations, and (4) higher proposed audit adjustments from the Internal Revenue Service. We exploit the unexpected closures of local banks as exogenous liquidity shocks to show that firms' external financial constraints affect their tax avoidance strategies. Overall, the linguistic cues in firms' qualitative disclosures provide incremental information beyond traditional accounting variables or commonly used effective tax rates to reveal and predict tax aggressiveness, both contemporaneously and in the future.
  • Publisher: Chicago: Blackwell Publishing Ltd
  • Language: English
  • Identifier: ISSN: 0021-8456
    EISSN: 1475-679X
    DOI: 10.1111/1475-679X.12081
    CODEN: JACRBR
  • Source: Alma/SFX Local Collection
Back to results list
Go to Previous pagePrevious Result  10 NextGo to Next page
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait