Organizational capital, corporate tax avoidance, and firm value

Mostafa Monzur Hasan, Gerald J. Lobo*, Buhui Qiu

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

50 Citations (Scopus)
121 Downloads (Pure)


We show that firms with higher levels of organizational capital (OC) exhibit higher levels of tax avoidance and that shareholders view tax avoidance of high OC firms as value-enhancing. We also show that the OC-tax avoidance relation mainly manifests in firms with good internal governance and information environment and in firms that face tight financial constraints. In addition, we document that tax avoidance by high OC firms increases future cash flow and that high OC firms are more likely to invest in tax haven subsidiaries. Overall, our evidence suggests that OC enhances firm’s tax efficiency.
Original languageEnglish
Article number102050
Pages (from-to)1-27
Number of pages27
JournalJournal of Corporate Finance
Early online date23 Jul 2021
Publication statusPublished - Oct 2021


  • Firm value
  • Organizational capital
  • Tax avoidance


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