Disclosure of corporate tax reports, tax enforcement, and price information

Journal of Banking & Finance(2020)

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Abstract
•We investigate the consequences of public disclosure of tax return information.•Managers report profits and trade according to the disclosed information.•The information content of stock prices varies with the tax disclosure regime.•Tax report disclosure improves market performance but can reduce tax revenue.•Our findings are relevant for policy makers in the tax disclosure debate.
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Key words
Disclosure,Corporate tax,Feedback effects of prices
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