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What is Corporate Tax Avoidance and Incentives about?

This document summarizes a research paper that analyzes the relationship between corporate tax avoidance and the use of high-powered managerial incentives. The paper develops a theoretical model showing that the relationship is complex and can go either way, depending on the interaction between managerial rent diversion and tax sheltering. The model predicts that high-powered incentives will reduce tax sheltering more for firms with strong governance, where rent diversion opportunities are more limited. Emp

Author

LaylyDwi_R

Language

EN