Internal Information Quality and Tax-Motivated Income Shifting Academic Article uri icon


  • ABSTRACT This study examines whether the quality of a firm's internal information environment influences its tax-motivated income shifting activities. Although income shifting is an important tax-planning strategy, evidence regarding its determinants is limited. We find that higher internal information quality (IIQ) is associated with greater tax-motivated income shifting, which suggests that higher IIQ enables managers to better identify and execute income shifting opportunities. We find that the influence of IIQ on tax-motivated income shifting varies with firm characteristics. Specifically, we find that higher IIQ is associated with tax-motivated income shifting for firms with greater uncertainty and greater coordination needs. Overall, these results suggest that the improved information obtained through higher-quality internal information environments allows managers to increase tax-motivated income shifting.

published proceedings


altmetric score

  • 3

author list (cited authors)

  • McGuire, S. T., Rane, S. G., & Weaver, C. D.

citation count

  • 32

complete list of authors

  • McGuire, Sean T||Rane, Scott G||Weaver, Connie D

publication date

  • September 2018