The Effects of Tax Avoidance News on Employee Perceptions of Managers and Firms: Evidence from Glassdoor.com Ratings-Reference-Cited by-同舟云学术

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

Published:2020-08-06 Issue:3 Volume:96 Page:343-372
ISSN:1558-7967
Container-title:The Accounting Review
language:en
Short-container-title:

Author:

Lee Yoojin¹,Ng Shaphan²³^ORCID,Shevlin Terry³^ORCID,Venkat Aruhn⁴

Affiliation:

1. California State University, Long Beach

2. Singapore Management University

3. University of California, Irvine

4. The University of Texas at Austin

Abstract

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.

Publisher

American Accounting Association

Subject

Economics and Econometrics,Finance,Accounting

Link

http://meridian.allenpress.com/accounting-review/article-pdf/96/3/343/2839084/i1558-7967-96-3-343.pdf

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