On the morning of July 10th, the 15th (total 176th) DUFE·Accounting and Finance Forum of 2023 was held as scheduled in Room 245 of Quan Xue Building, and Professor Jianxin Chi from the University of Nevada was invited for this forum. Professor Chi shared an academic paper titled "Investor Horizon and Corporate Tax Avoidance" with the attending teachers and students.
The benefits of corporate tax avoidance accrue mostly to short-horizon investors but the costs mostly to long-horizon investors. Does this mean that if the investment horizon of investors is extended, the corporate will reduce tax avoidance behavior? Professor Chi and his collaborators explored the above issues using the capital-gains-tax in multiple countries around the world as the research scenario (exogenous shocks of investment horizons). The research results shou that when the investment horizon is extended, the corporate tax avoidance behavior decreases by an economically large magnitude. Further research has found that the above result is more pronounced for firms facing greater short-termism and agency conflicts. In addition, increased horizons also lead to a reduced use of aggressive tax tools, but a greater use of conventional tools.
Professor Chi's lecture is detailed and informative, with a humorous and interesting teaching style. After the lecture, the attending teachers and students had in-depth exchanges and discussions with Professor Chi, and the atmosphere on site was very lively.
