IDEAS home Printed from https://ideas.repec.org/p/hal/gemptp/hal-04454690.html
   My bibliography  Save this paper

Is Corporate Tax Avoidance Related to Employee Treatment?

Author

Listed:
  • S. Schochet

    (Brooklyn College [CUNY] - CUNY - City University of New York [New York])

  • M. Benlemlih

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)

  • Jamil Jaballah

    (EESC-GEM Grenoble Ecole de Management)

Abstract

This paper investigates the empirical association between corporate tax avoidance and employee treatment. Using both aggressive and innocuous tax avoidance measures and MSCI ESG's ``Employee Relations'' dimension, we provide strong evidence of a positive relationship between the two constructs. Our findings are robust to various measures of corporate tax avoidance and employee treatment. Our testing also indicates that the positive relationship is driven by the ``strengths'' dimension of employee treatment for risky tax avoidance and ``concerns'' for innocuous tax avoidance. Taken together, our study's results are consistent with the theories of labor incidence and compensating differentials and suggest that employees require a compensation premium for bearing the increased financial risks resulting from CTA. © 2022 Elsevier B.V.

Suggested Citation

  • S. Schochet & M. Benlemlih & Jamil Jaballah, 2022. "Is Corporate Tax Avoidance Related to Employee Treatment?," Grenoble Ecole de Management (Post-Print) hal-04454690, HAL.
    • Handle: RePEc:hal:gemptp:hal-04454690
    DOI: 10.1016/j.jempfin.2022.08.002
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:gemptp:hal-04454690. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.