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Climate Policy Uncertainty And Corporate Tax Avoidance, Md Ruhul Amin, Akinloye Akindayomi, Md Showaib Rahman Sarker, Rafiqul Bhuyan
Climate Policy Uncertainty And Corporate Tax Avoidance, Md Ruhul Amin, Akinloye Akindayomi, Md Showaib Rahman Sarker, Rafiqul Bhuyan
School of Accountancy Faculty Publications and Presentations
Highlights
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This study investigates the relation between climate policy uncertainty and corporate tax avoidance.
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Firms undertake aggressive tax avoidance strategies during periods of heightened climate policy uncertainty.
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Further analysis indicates that cash savings from lower tax payments are used to pay dividends and not retained for reinvestment.
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Findings are consistent with the precautionary hypothesis that firms become more (i) conservative in their long-term investment strategies and (ii) risk-averse during periods of elevated climate policy uncertainty.
Abstract
This study examines the relation between climate policy uncertainty and corporate tax avoidance. Using a novel measure of climate policy uncertainty (CPU), we document …