ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

The Impact of Information-Sharing Activities in Online Stock Message Boards on Corporate Tax Avoidance

  • Sung-Jun An Department of Accounting, Changwon National University
  • Gun Lee Department of Accounting, Changwon National University

Asian Tax Journal Vol. 27 No. 2 (2026), pp. 67-101

Abstract

This study examines the impact of information sharing activities in online stock discussion forums, as an external information environment, on corporate tax avoidance. Active information exchange in online spaces can constrain managers' tax strategy choices by increasing external scrutiny and reputational risk regarding corporate behavior. Conversely, it is also possible that active investor discussions may pressure firms to meet short-term performance expectations, potentially incentivizing tax avoidance. This study hypothesizes that information sharing in stock discussion forums acts as a deterrent to tax avoidance and further investigates whether this effect varies according to market structure and firm characteristics. For the empirical analysis, we collected and refined post data from Naver stock discussion forums from 2018 to 2023, resulting in a final sample of 4,526 firm-year observations (derived from approximately 86.63 million posts). The level of information sharing was measured by the log value of the average annual number of posts (LOG_NUMCONTENT). Corporate tax avoidance was measured using the Cash Effective Tax Rate (CETR), which was multiplied by -1 for regression analysis to align the direction of interpretation. The results are as follows: First, information sharing activities in stock discussion forums showed a significant negative relationship with tax avoidance, indicating that firms with higher levels of information sharing exhibit lower levels of tax avoidance. This suggests that information exchange in public online spaces can effectively function as external monitoring of corporate tax strategies. Second, in the market segment analysis, this negative relationship was particularly strong for KOSPI-listed firms, likely due to stricter disclosure requirements and higher external monitoring environments. In contrast, this effect was not statistically significant for KOSDAQ-listed firms. Additional analyses revealed that: first, considering the qualitative aspect of information through post length, longer posts were found to suppress tax avoidance. Second, the deterrent effect of information sharing was more pronounced in firms followed by analysts. Third, the tax-avoidance-reducing effect of information sharing was observed only in firms whose performance did not decline compared to the previous year, whereas no significant results were observed for firms with declining performance. By empirically demonstrating that informal information channels, such as online communities, can influence corporate strategic tax behavior, this study highlights the social monitoring function of information sharing. While limitations exist regarding the inability to directly measure the content or accuracy of information, the lack of structural analysis on transmission mechanisms, and the focus solely on domestic listed firms, this study sheds light on the impact of information sharing on corporate transparency and tax responsibility, providing meaningful foundational data for related policies and future research.

Keywords

  • Information Sharing
  • Tax Avoidance
  • Stock Discussion Forum
  • Cash Effective Tax Rate (CETR)
  • External Monitoring

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