Societal trust and corporate tax avoidance

• Main Authors: KANAGARETNAM, Kiridaran, LEE, Jimmy, LIM, Chee Yeow, LOBO, Gerald
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Societal trust; tax avoidance; tax evasion; legal institutions; capital market pressure; Accounting; Business Law, Public Responsibility, and Ethics; Corporate Finance; Taxation
• Online Access: https://ink.library.smu.edu.sg/soa_research/1765; https://ink.library.smu.edu.sg/context/soa_research/article/2792/viewcontent/RAST_16_00194_Lim___2018_09_06_final.pdf
• Institution: Singapore Management University

Using aninternational sample of firms from 25 countries and a country-level index for societal trust, we document that societal trust is negatively associated with tax avoidance, even after controlling for other institutional determinants, such as home country legal institutions and tax system chara...