Please use this identifier to cite or link to this item:
|Title:||Auditors' constraining effect on tax noncompliance at different book-tax conformity levels in a transition economy||Author(s):||Chan, Koon Hung||Author(s):||Luo, R.
Mo, P. L. L.
|Issue Date:||2016||Publisher:||American Accounting Association||Journal:||Journal of International Accounting Research||Volume:||15||Issue:||3||Start page:||1||End page:||30||Abstract:||
This study examines how differential auditor quality can affect clients' tax noncompliance at different book-tax conformity levels. Overall, we find that high-quality auditors are associated with client firms' better tax compliance. Specifically, high-quality auditors are effective in constraining book-tax-conforming noncompliance because of the direct linkage between financial and tax reporting for such noncompliance at both the higher and the lower conformity periods. In contrast, high-quality auditors' constraining effect on book-tax-difference noncompliance is significant only in the lower conformity period when there are more opportunities for reporting irregularities. Furthermore, firms that switch from a low- to a high-quality auditor have better tax compliance after the switch. This study contributes to the literature by providing evidence that high-quality auditors not only can constrain clients' earnings management, but can also constrain tax noncompliance.
|URI:||https://repository.cihe.edu.hk/jspui/handle/cihe/499||DOI:||10.2308/jiar-51612||CIHE Affiliated Publication:||No|
|Appears in Collections:||BHM Publication|
Show full item record
Files in This Item:
|View Online||222 B||HTML||View/Open|
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.