Linguistic Cues in Annual Reports Signal Aggressive Tax Avoidance
Wednesday, July 20, 2016 - 14:11
in Mathematics & Economics
Companies that are financially constrained are more likely to use aggressive tax planning strategies in order to hold onto cash. Identifying those firms can be difficult, but research from McCombs shows that the negative words buried in a company’s annual report can reveal and predict tax avoidance. The tone of a disclosure may matter just […]