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Smart Or Shirking? The Effect Of Aggressive Tax Avoidance On Corporate Repuation, Jennifer Mcgarry
Smart Or Shirking? The Effect Of Aggressive Tax Avoidance On Corporate Repuation, Jennifer Mcgarry
College of Business Theses and Dissertations
In this study, I investigate how news that a company has engaged in aggressive tax avoidance affects the company’s reputation. If the general public believes companies have a responsibility to pay their “fair share” of the national tax burden, then they will likely view aggressive tax avoidance negatively. If instead the public believes companies have a responsibility to shareholders to maximize profits by minimizing tax, then they will likely view aggressive tax avoidance positively. I examine these two possibilities by conducting an experiment. I find that people tend to view aggressive tax avoidance negatively and thus companies suffer reputational damage …