Please use this identifier to cite or link to this item:
Scopus Web of Science® Altmetric
Type: Journal article
Title: Does a firm’s life cycle explain its propensity to engage in corporate tax avoidance?
Author: Hasan, M.
Al-Hadi, A.
Taylor, G.
Richardson, G.
Citation: The European Accounting Review, 2016; 26(3):1-33
Publisher: Taylor & Francis
Issue Date: 2016
ISSN: 0963-8180
Statement of
Mostafa Monzur Hasan, Ahmed Al-Hadi, Grantley Taylor and Grant Richardson
Abstract: This study examines the association between firm life cycle stages and corporate tax avoidance employing the Dickinson (2011) model of firms’ life cycle stages. Based on a large dataset of U.S. publicly listed firms over the 1987–2013 period, we find that compared to the shake-out stage of a firm’s life cycle, tax avoidance is significantly negatively associated with the growth and maturity stages, and significantly positively associated with the introduction and decline stages of a firm’s life cycle. In fact, we observe a U-shaped pattern in tax avoidance outcomes across the life cycle, consistent with the predictions of both dynamic resource-based dependence and agency theory. Finally, our results are robust to alternative measures of firm life cycle stages.
Rights: © 2016 European Accounting Association
DOI: 10.1080/09638180.2016.1194220
Published version:
Appears in Collections:Aurora harvest 8
Business School publications

Files in This Item:
File Description SizeFormat 
  Restricted Access
Restricted Access720.68 kBAdobe PDFView/Open

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.