---
_id: '61490'
abstract:
- lang: eng
  text: This study examines the effect of tax complexity on the market value of publicly
    traded firms. Using firm-level measures of tax complexity, we find that a one
    standard deviation increase in tax complexity—comparable in magnitude to the rise
    following the U.S. Tax Cuts and Jobs Act—is associated with a 2.6% decline in
    Tobin’s Q. The effect is particularly pronounced for complexity arising from anti-avoidance
    regulations and post-filing procedures. The negative valuation effect is more
    substantial for firms with limited opportunities for international profit shifting,
    weak governance, or low internal information quality. Further analyses reveal
    that tax system complexity is associated with a reduced growth potential of firms
    and less R&D and thus negative real responses that go beyond negative investment
    effects. Overall, our findings provide novel evidence of the economic costs of
    tax complexity and contribute to the debate on the design of efficient and equitable
    tax systems.
author:
- first_name: Anna-Sophie
  full_name: Braun, Anna-Sophie
  last_name: Braun
- first_name: Reinald
  full_name: Koch, Reinald
  last_name: Koch
- first_name: Caren
  full_name: Sureth-Sloane, Caren
  id: '530'
  last_name: Sureth-Sloane
  orcid: ' 0000-0002-8183-5901'
citation:
  ama: Braun A-S, Koch R, Sureth-Sloane C. <i>Tax Complexity and Firm Value</i>.;
    2025. doi:<a href="https://doi.org/10.2139/ssrn.5378221">10.2139/ssrn.5378221</a>
  apa: Braun, A.-S., Koch, R., &#38; Sureth-Sloane, C. (2025). <i>Tax Complexity and
    Firm Value</i>. <a href="https://doi.org/10.2139/ssrn.5378221">https://doi.org/10.2139/ssrn.5378221</a>
  bibtex: '@book{Braun_Koch_Sureth-Sloane_2025, series={TRR 266 Accounting for Transparency
    Working Paper Series No. 201}, title={Tax Complexity and Firm Value}, DOI={<a
    href="https://doi.org/10.2139/ssrn.5378221">10.2139/ssrn.5378221</a>}, author={Braun,
    Anna-Sophie and Koch, Reinald and Sureth-Sloane, Caren}, year={2025}, collection={TRR
    266 Accounting for Transparency Working Paper Series No. 201} }'
  chicago: Braun, Anna-Sophie, Reinald Koch, and Caren Sureth-Sloane. <i>Tax Complexity
    and Firm Value</i>. TRR 266 Accounting for Transparency Working Paper Series No.
    201, 2025. <a href="https://doi.org/10.2139/ssrn.5378221">https://doi.org/10.2139/ssrn.5378221</a>.
  ieee: A.-S. Braun, R. Koch, and C. Sureth-Sloane, <i>Tax Complexity and Firm Value</i>.
    2025.
  mla: Braun, Anna-Sophie, et al. <i>Tax Complexity and Firm Value</i>. 2025, doi:<a
    href="https://doi.org/10.2139/ssrn.5378221">10.2139/ssrn.5378221</a>.
  short: A.-S. Braun, R. Koch, C. Sureth-Sloane, Tax Complexity and Firm Value, 2025.
date_created: 2025-10-01T09:20:05Z
date_updated: 2025-10-01T09:27:34Z
department:
- _id: '187'
doi: 10.2139/ssrn.5378221
jel:
- M12
- H26
- H25
- H32
language:
- iso: eng
page: '48'
publication_status: published
series_title: TRR 266 Accounting for Transparency Working Paper Series No. 201
status: public
title: Tax Complexity and Firm Value
type: working_paper
user_id: '97894'
year: '2025'
...