The effect of employee satisfaction on effective corporate tax planning: Evidence from Glassdoor

IF 16.4 1区 化学 Q1 CHEMISTRY, MULTIDISCIPLINARY
John Li
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引用次数: 4

Abstract

Human capital plays a substantial role in the corporate tax planning process, and thus a firm's ability to attract, retain and motivate talented employees is a potential determinant of tax planning outcomes. Motivated by the premise that employee satisfaction is a key driver of productivity, I investigate the relationship between employee satisfaction ratings, collected from the website Glassdoor, and corporate tax planning outcomes. I find that firms with higher employee satisfaction ratings exhibit significantly greater tax avoidance as well as lower tax risk. A one-point increase in overall employee satisfaction ratings, on a five-point scale, is associated with a 2.6 percentage point decrease in cash effective tax rates (Cash ETRs) and a 0.20 standard deviation decrease in Cash ETR volatility. These results are stronger for firms with larger corporate tax departments, which rely more on employees to manage the tax planning process. I also find that employee satisfaction is negatively associated with UTB reserves, indicating that the increased tax avoidance is unlikely to arise from aggressive tax positions. Finally, through path analyses, I find that employee satisfaction can influence a firm's tax outcomes by reducing tax department turnover and improving the firm's internal information environment. Overall, my findings are consistent with the premise that employees play a substantial role in implementing tax avoidance strategies and mitigating tax risk, thus managers who adopt a strong work culture and employee-friendly policies can attain beneficial tax outcomes.

员工满意度对有效企业税收筹划的影响:来自Glassdoor的证据
人力资本在企业税收筹划过程中发挥着重要作用,因此企业吸引、留住和激励有才能员工的能力是税收筹划结果的潜在决定因素。基于员工满意度是生产力的关键驱动因素这一前提,我调查了从Glassdoor网站收集的员工满意度评级与企业税收筹划结果之间的关系。我发现,具有较高员工满意度评级的公司表现出更大的避税行为以及更低的税收风险。在五分制中,员工满意度每提高一个百分点,现金有效税率(cash ETRs)就会降低2.6个百分点,现金有效税率波动率就会降低0.20个标准差。这些结果对于拥有较大企业税务部门的公司更为明显,因为这些公司更多地依赖员工来管理税务筹划过程。我还发现,员工满意度与UTB储备呈负相关,这表明避税的增加不太可能来自激进的税收立场。最后,通过路径分析,我发现员工满意度可以通过减少税务部门的流动率和改善企业的内部信息环境来影响企业的税收结果。总的来说,我的发现与员工在实施避税策略和减轻税收风险方面发挥重要作用的前提是一致的,因此,采用强大的工作文化和员工友好政策的管理者可以获得有益的税收结果。
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来源期刊
Accounts of Chemical Research
Accounts of Chemical Research 化学-化学综合
CiteScore
31.40
自引率
1.10%
发文量
312
审稿时长
2 months
期刊介绍: Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.
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