Time: 14:00, April 29, 2014 (Tuesday)

Venue: Room 302, Starr Building

Moderator: Prof. Chao CHEN

Speaker: Gerald J. Lobo (University of Houston)

Topic: Auditor Quality and Corporate Tax Avoidance

Abstract: Using an international sample of firms from 34 countries, we study the relation between auditor quality and corporate tax avoidance. We find strong evidence that auditor quality is associated with lower corporate tax avoidance, even after controlling for other institutional determinants such as home-country tax system characteristics. We also explore the effects of three country-level institutional characteristics – level of investor protection, tax enforcement, and disclosure requirement – on the relation between auditor quality and tax avoidance. We find that the effects of auditor quality on tax avoidance are more pronounced when these institutions are weaker.