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Full-Text Articles in Taxation
Corporate In-House Human Capital Investment In Tax Planning, Xia Chen, Qiang Cheng, Travis K. Chow, Yanju Liu
Corporate In-House Human Capital Investment In Tax Planning, Xia Chen, Qiang Cheng, Travis K. Chow, Yanju Liu
Research Collection School Of Accountancy
In-house human capital tax investment is a significant input to a firm’s tax decisions. Yet,due to the lack of data, there is little empirical evidence on how corporate in-house taxdepartments are associated with tax planning and compliance outcomes. Using handcollected data on corporate tax employees in S&P1500 firms over the period 2009-2014, wefind that in-house tax planning investments lead to greater tax avoidance, in-house taxcompliance investments lead to lower tax risk, while general tax investments achieve bothgoals. We obtain the same inferences when controlling for endogeneity or using changespecifications. We also find that the effects of in-house tax investments are …