The Influence of a Firm's Business Strategy on its Tax Aggressiveness

Higgins, Danielle; Omer, Thomas C.; Phillips, John D.

doi:10.1111/1911-3846.12087

Cited by 341 publications

(472 citation statements)

References 54 publications

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“…This makes the present study replicable. Second, many accounting researchers use the Miles andSnow (1978, 2003) typology (e.g., Ittner et al 1997;Bentley et al 2013;Higgins et al 2015;Chen et al 2017), which makes this study comparable to these other papers (Note 4). Finally, all strategy typologies exhibit considerable overlap with one another.…”

Section: Business Strategymentioning

confidence: 76%

“…This study also adds to the accounting literature on business strategy. While prior literature has linked business strategy to financial misstatements, audit fees, tax avoidance, and going concern reporting (Bentley, Omer, and Sharp 2013;Higgins, Omer, and Phillips 2015;Chen, Eshleman, and Soileau 2017), this is the first study to find that business strategy is a significant determinant of the magnitude of information transfers.…”

Section: Introductionmentioning

confidence: 80%

“…Business strategy is measured using the organizational typology of Miles andSnow (1978, 2003). This measure has been used extensively in the accounting literature (e.g., Bentley et al 2013;Higgins et al 2015;Chen et al 2017). Higher (lower) values of indicate that the firm operates more like a prospector (defender).…”

Section: Methodsmentioning

confidence: 99%

“…Higher (lower) values of indicate that the firm operates more like a prospector (defender). I follow recent literature (Bentley et al 2013;Higgins et al 2015;Chen et al 2017) and use the following six firm characteristics to construct the composite measure : (i.) the ratio of R&D expense to total sales, (ii.)…”

Section: Methodsmentioning

confidence: 99%

“…This means that any inferences based on one organizational typology are likely going to be applicable to other typologies (Dent 1990;Langfield-Smith 1997). More specifically, one can consider Miles andSnow's (1978, 2003) The accounting literature has shown that prospectors are more prone to financial misreporting and higher audit fees (Bentley et al 2013), avoid more taxes (Higgins et al 2015), and are more likely to receive both going concern and material weakness opinions from their auditor (Chen et al 2017). …”

Section: Business Strategymentioning

confidence: 99%

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Business Strategy and Intra-Industry Information Transfers

Guo¹

2017

AFR

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This study examines whether business strategy affects information transfers from one firm to its industry peers. I use Miles and Snow's (1978, 2003) organizational typology to classify firms along a continuum with innovative 'prospector' firms at one end and stable low-growth 'defender' firms at the other. When a firm announces its earnings, the information transfer to other peer firms in the same industry is weaker (stronger) when the announcing firm is a prospector (defender). In addition, information transfers from the announcing firm to industry peers are weaker (stronger) when the industry peer is a prospector (defender). Taken together, the evidence in this paper suggests that firms' business strategies affect the strength of information transfers.

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Section: Business Strategymentioning

confidence: 76%

Section: Introductionmentioning

confidence: 80%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Business Strategymentioning

confidence: 99%

See 3 more Smart Citations

Business Strategy and Intra-Industry Information Transfers

Guo¹

2017

AFR

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Business strategy and firm efforts on environmental protection: Evidence from China

et al. 2019

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Although business strategy plays a fundamental role in firm operations, whether and how business strategy affects firms' environmental protection behaviors remain unclear. On the basis of a typical emerging market, we show that firms following prospector strategies take more environmental protection actions than do those following defender strategies. Our findings are robust to endogeneity checks and alternative measures of business strategy. We further find that prospectors engage in more environmental activities than do defenders when the degree of financial constraint or earning management is high. Our results are particularly pronounced in state-owned enterprises, heavy-polluting industries, and firms located in regions with strict environmental regulations. Overall, this study provides clear policy implications for regulators concerned with environmental protection.

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Business strategy and sustainable development: Evidence from China

Liu

Kong

2020

Bus Strat Env

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This study examines whether and how business strategies affect firms' sustainable development from the view of green innovation. We show that firms following prospector strategy engage in less sustainable development behaviors than those following defender strategies. The negative relation between business strategy and green innovation continues to hold when addressing robustness with alternatives of business strategy and green innovation and addressing potential endogeneity with instrumental variable. We further find that political connection strengthens whereas environmental regulation weakens the negative relation between business strategy and green innovation. Finally, we explore the economic consequences of green innovation caused by strategic differences. Regrettably, the win–win situation of environment and development does not come true.

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The Influence of a Firm's Business Strategy on its Tax Aggressiveness

Cited by 341 publications

References 54 publications

Business Strategy and Intra-Industry Information Transfers

Business Strategy and Intra-Industry Information Transfers

Business strategy and firm efforts on environmental protection: Evidence from China

Business strategy and sustainable development: Evidence from China

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