Abstract

This paper empirically investigates the association between the size of accounting firm offices and corporate tax aggressiveness. We find that clients audited by large offices have lower levels of corporate tax aggressiveness. We also find that such a negative relation is less pronounced when an accounting firm office provides tax services or when the office possesses tax-specific industry expertise, and it is more pronounced when a client is financially important. The study contributes to the literature by documenting the role of accounting firm offices in influencing tax aggressiveness.