Time/时间：2021/10/15 10:00-11:30 am
Online Conference ID/腾讯会议号：337327644
Topic/题目：Auditor Liability, Litigation Risk, and Corporate Tax Avoidance: Evidence from a Quasi-Experiment in the U.S.
Speaker/报告人：Gaoguang (Stephen) ZHOU（Associate Professor）
Facilitator/主持人：Jinshuai HU（Associate Professor）
Abstract/摘要
Exploiting the staggered changes in state-level auditor third-party liability in the U.S. as an exogenous shock, we examine the role that auditor litigation risk plays in shaping corporate tax avoidance. We find that firms significantly reduce their tax avoidance after an exogenous increase in their auditors’ litigation risk. The impact of increased auditor litigation risk on corporate tax avoidance is stronger for firms audited by Big 4 auditors, firms with higher ex ante litigation risk, and firms covered by more analysts. Additional evidence implies that the reduction in corporate tax avoidance after an increase in auditor litigation risk is associated with improvements to firms’ financial reporting transparency and information environment. We document a plausibly causal effect of auditor litigation risk on corporate tax policies.
About the Speaker/报告人简介
Gaoguang (Stephen) ZHOU, Associate Professor, MBA Associate Director, Ph.D. Coordinator (Accounting), Hong Kong Baptist University
Professional Qualification
Certified Management Accountant (CMA®) 2012, American Accounting Association member
Research Interest
Auditing, Corporate Governance and Accounting, Corporate Finance
Published Papers
Has published 20 papers in internationally renowned journals, including Journal of Accounting and Economics (JAE), Journal of International Business Studies (JIBS) , Journal of Corporate Finance (JCF)，Etc.