Persistent Link:
http://hdl.handle.net/10150/612100
Title:
The Effect of Tax Aggressiveness on Investment Efficiency
Author:
Goldman, Nathan Chad
Issue Date:
2016
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Embargo:
Release after 10-May-2017
Type:
text; Electronic Dissertation
Keywords:
Investment Efficiency; Tax Aggressiveness; Management; Agency Costs of Free Cash Flows
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Graduate College; Management
Degree Grantor:
University of Arizona
Advisor:
Dhaliwal, Dan S.

Full metadata record

DC FieldValue Language
dc.language.isoen_USen
dc.titleThe Effect of Tax Aggressiveness on Investment Efficiencyen_US
dc.creatorGoldman, Nathan Chaden
dc.contributor.authorGoldman, Nathan Chaden
dc.date.issued2016-
dc.publisherThe University of Arizona.en
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en
dc.description.releaseRelease after 10-May-2017en
dc.description.noteTax aggressiveness generates significant cash savings and information asymmetry. Combining these two consequences of tax aggressiveness, I suggest that tax aggressiveness is associated with higher agency costs of free cash flows that affect investment decisions. Using the conditional investment efficiency model, I find evidence that tax aggressiveness is associated with more investments in firms with high access to investable funds, thus suggesting tax aggressiveness is associated with overinvestment. I also provide evidence that stronger tax monitoring and a change in tax disclosures mitigate the relation between tax aggressiveness and overinvestment. Lastly, I find that the overinvestment is associated with lower future abnormal returns. Thus, my results suggest that poor managerial investment decision making is an unintended consequence to tax aggressiveness. Additionally, I further the need for shareholders and board of directors to exert influence to avoid compensating managers for aggressive tax strategies.en
dc.typetexten
dc.typeElectronic Dissertationen
dc.subjectInvestment Efficiencyen
dc.subjectTax Aggressivenessen
dc.subjectManagementen
dc.subjectAgency Costs of Free Cash Flowsen
thesis.degree.namePh.D.en
thesis.degree.leveldoctoralen
thesis.degree.disciplineGraduate Collegeen
thesis.degree.disciplineManagementen
thesis.degree.grantorUniversity of Arizonaen
dc.contributor.advisorDhaliwal, Dan S.en
dc.contributor.committeememberDrake, Katharine D.en
dc.contributor.committeememberSunder, Jayanthien
dc.contributor.committeememberDhaliwal, Dan S.en
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