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Creative corporate culture and corporate tax avoidance

Author

Listed:
  • Hasan, Tahseen
  • John, Kose
  • Teng, Haimeng
  • Wu, Qiang

Abstract

This study examines the association between creative corporate culture and corporate tax avoidance. We construct a novel measure of creative corporate culture through the textual analysis of public firms’ 10-K reports. We find that firms with highly creative culture avoid taxes to a greater extent than firms with less creative culture. This effect is incremental to previously documented effects of research and development and intangible (e.g., patents) on tax avoidance. Overall, our study documents a negative outcome of creative corporate culture on corporate behavior in terms of tax avoidance.

Suggested Citation

  • Hasan, Tahseen & John, Kose & Teng, Haimeng & Wu, Qiang, 2024. "Creative corporate culture and corporate tax avoidance," The British Accounting Review, Elsevier, vol. 56(3).
    • Handle: RePEc:eee:bracre:v:56:y:2024:i:3:s0890838923000562
    DOI: 10.1016/j.bar.2023.101217
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    More about this item

    Keywords

    Creative corporate culture; Tax avoidance; Textual analysis;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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