Labor Unions and Tax Aggressiveness

By James A. Chyz, Winnie S.C. Leung, Oliver M. Rui. 2013

278 citations recorded by the source corpus.

We examine the impact of unionization on firms' tax aggressiveness. We find a negative association between firms' tax aggressiveness and union power and a decrease in tax aggressiveness after labor union election wins. This relation is consistent with labor unions influencing managers' in one, or both, of two ways: (1) constraining managers' ability to invest in tax aggressiveness through increased monitoring; or (2) decreasing returns to tax aggressiveness that arise from unions' rent seeking behavior. We also find preliminary evidence that the market expects these reductions around union elections and discounts firms that likely add shareholder value via aggressive tax strategies.

View Paper: https://www.semanticscholar.org/paper/e2f6aa5642df779dfbcf8585e2db5c6396606972

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

1. Tao Chen
2. Chen Lin
3. Sabri Boubaker
4. Nianhang Xu
5. Qigui Liu

Citations in the corpus

• Does Information Asymmetry Affect Corporate Tax Aggressiveness? (2017, background): “, 2012), labor unions (Chyz et al., 2013) and executives (e.”
• How does quasi-indexer ownership affect corporate tax planning? (2019, unknown): “However, the improvement in pretax performance could arise from actions that give rise to temporary differences and not permanent differences - the former (latter) does not (does) affect GAAP ETRs. from SEC filings (Form N-PX) for the reporting period July 1, 2005 to June 30, 2006, and search for ta”
• Corporate Political Connections and Tax Aggressiveness (2013, unknown): “2010), and stakeholder relationships (Cen et al. 2014; Chyz et al. 2013).”