Topic: Investor Horizon and Corporate Tax Avoidance

Speaker: Jianxin Chi

Date & Time: 08:30-10:00 Monday, July 10, 2023

Venue: Room 245, Quan Xue Building

Organizers: School of Accounting, Dongbei University of Finance and Economics, P.R. China & Liaoning Capital Market Finance and Accounting Graduate Innovation and Academic Exchange Center

Abstract:

The benefits of corporate tax avoidance accrue mostly to short-horizon investors but the costs mostly to long-horizon investors. Does this mean that longer investor horizons will restrain corporate tax avoidance? Studying capital-gains-tax changes that exogenously “lock in” investors into longer horizons, we find that corporate tax avoidance indeed decreases by an economically large magnitude. This effect is robust to alternative explanations and various endogeneity checks, and is more pronounced for firms facing greater short-termism and agency conflicts. Increased horizons also lead to a reduced use of aggressive tax tools such as having subsidiaries in tax-haven countries, but a greater use of conventional tools such as using debt as a tax shield.

Introduction of Speaker:

Jianxin Chi, professor of finance and head of the finance department at the University of Nevada, Las Vegas. He serves as a reviewer for multiple international high-level financial journals, and has previously served as the deputy editor in chief for Decision Sciences and Emerging Markets Finance and Trade. His research interests cover a wide range of areas, including behavior finance, financial market information, corporate governance, manager compensation, cash management, market competition, company value evaluation, earnings management, etc. He has published multiple academic papers in leading financial research journals worldwide and regularly give academic lectures at international financial conferences and university seminars. He has received multiple research funding grants and has been awarded the Best Research Award and Best Professor Award by the Department of Finance at the University of Nevada. He has taught courses such as Investment, Financial Management, Finance Model, Capital Markets, and Federal Reserve Operations in several universities across the United States. Prior to entering academia, he had many years of working experience in various fields such as international business, marketing, business analysis, and operations management.

Special Attention:

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