Document Type

Dissertation

Degree

Doctor of Business Administration

Major

Business Administration

Date of Defense

9-30-2022

Graduate Advisor

Michele Meckfessel, Department of Accounting

Committee

Thomas Kozloski, Ph.D in Accounting

He We, Ph.D in Accounting

Abstract

Corporate Tax Avoidance and Fraud Risk

There is mixed evidence on whether corporate tax avoidance (CTA) is positively or negatively related to aggressive financial reporting. The Public Company Accounting Oversight Board (PCAOB) requires that auditors assess fraud risks that are related to aggressive financial reporting. In this study I extend the research of CTA by examining the relationship between CTA and fraud risk. I use accrual quality related variables, performance variables, and non-financial measures (NFMs) to measure fraud risk. Drawing on agency theory and fraud risk triangle theory, I find that CTA is positively related to fraud risk. However, I do not find that the effect of CTA on fraud risk differs significantly between fraud and non-fraud companies. In addition, my results that fraud risk variables are associated with accounting frauds suggest that fraud risk can be used to predict accounting frauds.

Included in

Accounting Commons

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