Increasing levels of institutional investment in companies could be encouraging corporations to pursue tax shelters and other forms of tax avoidance, according to a pair of academic studies.

Passive institutional ownership has a “significantly positive relationship” with tax avoidance, according to one of the studies, conducted by Mozaffar Khan of the University of Minnesota, Suraj Srinivasan of Harvard Business School and Liang Tan of George Washington University. The paper appears in the March issue of The Accounting Review, published by the American Accounting Association.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access