Three essays on financial information and capital market
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Authors
Chen, Huimin (Amy)
Issue Date
2019-05
Type
Electronic thesis
Thesis
Thesis
Language
ENG
Keywords
Management
Alternative Title
Abstract
In the first essay I examine whether and to what extent industry peers use tax avoidance as a strategic mechanism to maintain their relative competitive positions. I exploit a unique setting where a relatively large private firm imposes significant competitive pressure on its industry peers by going public (an IPO) and revealing its competitive advantages. I find that peer firms increase their tax avoidance after large IPOs. I posit and find that tax avoidance serves as a financing strategy to generate internal funds as well as an earnings-management strategy to modify financial information. In addition, I find that the impact of IPOs on peer firms’ tax avoidance is more salient for industries with lower information intensity.
Description
May 2019
School of Management
School of Management
Full Citation
Publisher
Rensselaer Polytechnic Institute, Troy, NY