The Effects of Tax Avoidance News on Employee Perceptions of Managers and Firms: Evidence from Glassdoor.com Ratings

Yoojin Lee, Shaphan Ng, Terry Shevlin, Aruhn VenkatAccounting税务研究UTD24

The Accounting Review2020-08-06California State University, Long Beach; University of California, Irvine; Singapore Management University; The University of Texas at AustinDOI

Citations132

Influential3

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Semantic Scholar

ABSTRACT We examine whether employee perceptions of managers and firms fall following tax avoidance news. Using S&P 500 firms and generalized difference-in-differences specifications, we find that tax avoidance news negatively affects employee perceptions of managers and firms. In cross-sectional tests, we find that (1) firms and managers in consumer-facing industries suffer larger employee-related perception changes from tax avoidance news compared to other firms, and (2) well-performing firms and their managers face smaller perception changes than other firms and managers. Overall, our results are consistent with tax avoidance news negatively affecting employee perceptions of managers and firms.

BusinessPerceptionTax avoidanceMarketingDouble taxationPsychologyFinanceCorporate Taxation and AvoidanceCorporate Finance and GovernanceTaxation and Compliance Studies