Diversity of uncertainty and corporate tax avoidance
Issued Date
2024-01-01
Resource Type
eISSN
15452921
Scopus ID
2-s2.0-85211144710
Journal Title
Economics Bulletin
Volume
44
Issue
3
Start Page
940
End Page
947
Rights Holder(s)
SCOPUS
Bibliographic Citation
Economics Bulletin Vol.44 No.3 (2024) , 940-947
Suggested Citation
Chatjuthamard P., Chintrakarn P., Jiraporn P. Diversity of uncertainty and corporate tax avoidance. Economics Bulletin Vol.44 No.3 (2024) , 940-947. 947. Retrieved from: https://repository.li.mahidol.ac.th/handle/123456789/102364
Title
Diversity of uncertainty and corporate tax avoidance
Author(s)
Author's Affiliation
Corresponding Author(s)
Other Contributor(s)
Abstract
We explore how corporate tax avoidance is influenced by the diversity of uncertainty- a unique dimension of economic policy uncertainty (EPU) that has been surprisingly overlooked. We find that firms facing multiple areas of uncertainty concurrently tend to face heightened risk, prompting them to take precautionary measures and preserve cash through increased tax avoidance strategies. Notably, the effect of EPU diversity on tax avoidance is distinct from the effect of the level of EPU itself. Our study usefully identifies a more nuanced impact of EPU on corporate tax avoidance, offering valuable insights for regulators, policymakers, corporate executives, and investors in general.