Exploring Tax Avoidance: A Synthesis of the Literature

The chapter provides an in-depth exploration of the theoretical underpinnings of tax avoidance, shedding light on its distinct nature compared to tax evasion and the challenges surrounding its definition. It delves into the measurement methodologies employed to quantify tax avoidance and examines the factors that drive its occurrence. Furthermore, the chapter investigates the far-reaching economic consequences of tax avoidance, specifically focusing on its impact on corporate transparency, cost of capital, and firm value.