The Impact of Large Tax Settlements on Firms' Subsequent Tax and Financial Reporting
AuthorFinley, Andrew Rhodes
AdvisorDhaliwal, Dan S.
Committee ChairDhaliwal, Dan S.
MetadataShow full item record
PublisherThe University of Arizona.
RightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
AbstractIn this study, I examine how firms change their tax avoidance and financial reporting following large tax settlements. I find that firms decrease tax avoidance following large settlements and this effect is concentrated among firms under-reserved for the settlement for financial accounting purposes. Additionally, my results suggest firms learn from tax examination resolutions in a way that affects their financial reporting over the tax account. Finally, I find that the effect of large settlements also spills over to firms within the same auditor network. This study provides context to the tax authority's efficacy in deterring tax avoidance and highlights its role in the financial reporting process.
Degree ProgramGraduate College