Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212364 
Year of Publication: 
2016
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 26/2016
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This study examines whether foreign institutional investors (FIIs) help explain variation in corporate tax avoidance and whether mechanisms such as tax morality, investment horizon, and corporate governance underlie the relation between FIIs and tax avoidance. We find robust evidence that FIIs are negatively associated with corporate tax avoidance. Moreover, this negative association is dominated by FIIs from countries with high tax morality, FIIs with long-term investment horizons, and FIIs from countries with high corporate governance quality. We conclude that FIIs play an active role in shaping corporate tax avoidance policy.
JEL: 
G23
G32
H26
M41
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-125-2
Document Type: 
Working Paper

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