The Effect of Industrial Diversification on Firm Taxes Public Deposited

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Last Modified
  • March 19, 2019
Creator
  • Wentland, Kelly
    • Affiliation: Kenan-Flagler Business School
Abstract
  • This study investigates whether there is an empirical basis for one predicted benefit from industrial diversification: whether a conglomerate firm incurs lower tax liabilities than pure play firms. The results indicate that, on average, firms operating in multiple industries have lower tax liabilities than stand-alone firms. In additional cross-sectional tests, I identify conditions under which firms observe (or do not observe) tax benefits from diversification. Finally, I explore two simultaneous equations techniques from the diversification literature as alternate approaches for addressing endogeneity. Overall, this study furthers our understanding of the benefits of industrial diversification, providing initial evidence that conglomerates, on average, have lower tax liabilities than single-industry firms.
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  • In Copyright
Advisor
  • Shackelford, Douglas A.
  • Labro, Eva
  • Maydew, Edward
  • Bushman, Robert
  • Moulton, Jeremy
Degree
  • Doctor of Philosophy
Degree granting institution
  • University of North Carolina at Chapel Hill Graduate School
Graduation year
  • 2015
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  • Chapel Hill, NC
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