haku: @indexterm Finance / yhteensä: 2195
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| Tekijä: | Kim, J. Li, Y. Zhang, L. |
| Otsikko: | Corporate tax avoidance and stock price crash risk: Firm-level analysis |
| Lehti: | Journal of Financial Economics
2011 : JUN, VOL. 100:3 p. 639-662 |
| Asiasana: | agency theory corporate governance USA stakeholders finance |
| Kieli: | eng |
| Tiivistelmä: | Using a large sample of U.S. firms for the period 1995-2008, this research paper provides strong and robust evidence that corporate tax avoidance is positively related to firm-specific stock price crash risk. It is found that the hoarding and accumulation of bad news for extended periods lead to stock price crashes when the accumulated hidden bad news crosses a tipping point, and thus comes out all at once. Moreover, it is shown that the positive relation between tax avoidance and crash risk is attenuated when firms have strong external monitoring mechanisms such as high institutional ownership, high analyst coverage, and greater takeover threat from corporate control markets. |
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