Tax Avoidance and Firm Value in Japan

2016 Fiscal Year Final Research Report

• Project/Area Number: 25380628
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Accounting
• Research Institution: Osaka Gakuin Junior College (2016); Osaka Gakuin University (2013-2015)
• Principal Investigator: Akinori Goto 大阪学院大学短期大学部, 経営実務科, 教授 (70331684)
• Project Period (FY): 2013-04-01 – 2017-03-31
• Keywords: 会計学 / 企業価値 / 税負担削減行動 / 株式パフォーマンス

Outline of Final Research Achievements

This study aims to investigate the relation between corporate tax avoidance and firm value in Japan. Using a tax avoidance measure based on long-run current effective tax rates, we find that tax avoidance is negatively correlated with stock returns. We also find that tax avoidance reduces the informativeness of taxable income and that consistent book-tax differences (BTDs) enhance its informativeness.

Free Research Field

会計学