Customer-supplier relationships and corporate tax avoidance

• Main Authors: CEN, Ling, MAYDEW, Edward L., ZHANG, Liandong, ZUO, Luo
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: Customers; Industrial organization; Suppliers; Supply chain; Tax avoidance; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1703; https://ink.library.smu.edu.sg/context/soa_research/article/2730/viewcontent/CustomerSupplierRelationshipsCorporateTaxAvoidance_2016.pdf
• Institution: Singapore Management University

We investigate whether firms in close customer-supplier relationships are better able to identify and implement tax avoidance strategies via supply chains. Consistent with our prediction, we find that both principal customers and their dependent suppliers avoid more taxes than other firms. Further a...