Resumo

This study investigates the impact of financial analyst coverage on the tax aggressiveness of Brazilian companies listed on the B3 stock exchange. The study focuses on the role of information asymmetry in tax aggressiveness and examines metrics such as Book-Tax Differences and Effective Tax Rates to assess the extent to which companies employ aggressive tax practices.

The study aims to examine whether an increase in financial analyst coverage is associated with a decrease in tax aggressiveness among Brazilian companies listed on the B3 stock exchange, as well as to explore the mechanisms through which analyst coverage may impact tax aggressiveness.

The study draws on the literature on financial analyst coverage, information asymmetry, and tax aggressiveness to develop hypotheses and a conceptual framework.

The study employs multiple regression analysis to test the hypotheses and examine the relationship between financial analyst coverage and tax aggressiveness. The sample consists of Brazilian companies listed on the B3 stock exchange between 2010 and 2021.

The findings of the study indicate that an increase in analyst coverage is associated with a decrease in tax aggressiveness among Brazilian companies listed on the B3 stock exchange. The study also finds that this relationship is mediated by information asymmetry.

The study highlights the role of financial analyst coverage in mitigating information asymmetry between investors and company management and reducing tax aggressiveness among Brazilian companies listed on the B3 stock exchange. The findings have implications for regulators, financial statement preparers, and users who rely on accounting information in Brazil for decision-making.

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