时间：2014年6月17日（周二）下午 1:30pm--3:00pm
地点：会计学院206会议室
报告人：黄河 副教授 （Yeshiva University）
主持人：黄俊
题目: Customer Concentration and Tax Avoidance
Paper Abstract: This study examines the relation between customer concentration, a critically important aspect of a firm’s business strategy, and the level of corporate tax avoidance. A firm with a concentrated customer base needs to hold more cash, faces a higher likelihood of financial distress, and has an incentive to manage its earnings upwards. Given that tax planning can increase both cash flow and accounting earnings, and that firms adopting a risky business strategy of relying on major customers are likely more tolerant to the risks inherent in tax avoidance activities, we hypothesize that customer concentration is positively associated with the level of tax avoidance. As predicted, we find various measures of corporate customer concentration to be positively related to the level of tax avoidance as measured by effective tax rate and book-tax difference. We also document that this positive relation is more pronounced when the firm has lower market share, less revenue diversification, and less real earnings management. By contrast, we find that firms engage in lower levels of tax avoidance when they have a governmental major customer. Together, our findings indicate that a firm’s business strategy (i.e., corporate customer concentration and governmental major customer) has a significant effect on the extent to which it avoids tax.
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