Tax knowledge diffusion through individual auditor network ties: Evidence from China

• Main Authors: LIM, Chee Yeow, SHEVLIN, Terry, WANG, Kun, XU, Yanping
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Network ties; audit partner; tax avoidance; school ties separated; Accounting; Asian Studies
• Online Access: https://ink.library.smu.edu.sg/soa_research/1858; https://ink.library.smu.edu.sg/context/soa_research/article/2885/viewcontent/SSRN_id3229564.pdf
• Institution: Singapore Management University

This study investigates whether network ties via sharing the same individual auditor influences the diffusion of tax avoidance knowledge. We find that firms with greater connection to low-tax firms through audit partners have lower effective tax rates (ETRs), consistent with tax avoidance knowledge...