| Summary: | 碩士 === 國立中興大學 === 財務金融學系所 === 106 === This paper empirically tests tax avoidance behavior with the non-high-tech industry and high-tech industry. The research period was from 2003 to 2016, and the samples come from the constituent stock of Russell 2000 index in the United States. Using the cash effective tax rate (CASHETR) and the GAAP effective tax rate (GAAPETR) as proxy of tax avoidance. I use differential test and regression analysis to analyze the differences between high-tech and non-high-tech industries’ tax avoidance behavior and analyze corporate tax avoidance motivations. In addition, tax disputes case may arise from corporate tax avoidance activities. I also use regression analysis to explore whether these tax disputes cases will impact on companies’ future tax avoidance behavior. For robustness purposes, I use 5-year data for CASHETR as a long-term variable proxy.
Empirical results found that non-high-tech industry tax avoidance behavior is more significant than high-tech industry. In non-high-tech industry, corporate tax avoidance behavior has a negative impact on operation risk, which means that non-high-tech companies can improve tax avoidance to reduce their operational risk. Further, institutional investors have a positive impact on tax avoidance. Institutional investors will support companies in their tax avoidance activities for maximizing their wealth for shareholders. When companies are non-high-tech industries, corporate tax avoidance behavior has a positive impact on stock returns. The possible reason is that non-high-tech companies belong to value-type stocks and their stock price change might less volatility. Negative news, such as the tax avoidance, will cause stocks to fall. Finally, tax disputes have a positive impact on tax avoidance. That means when companies have tax disputes cases in the previous period, they may be more tax avoidance in the future.
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