Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Business
The Effect Of Innovation On Corporate Tax Avoidance, Peng Guo
The Effect Of Innovation On Corporate Tax Avoidance, Peng Guo
LSU Doctoral Dissertations
A large body of literature examines the determinants of corporate tax avoidance. In this paper I examine a new determinant of tax avoidance: innovation. Firms with more innovation generate more patents. Due to information asymmetry between the managers of the firm and tax authorities, firms have considerable discretion in choosing which country the patent revenue is generated in. In this study, I predict that firms with more patents will choose to attribute the revenue from those patents to countries with low tax rates. Using a relatively new data source which contains data on patents, I find evidence consistent with my …