Journal ArticleContemporary Accounting Research · March 1, 2025
Academic research investigating the economic consequences of tax avoidance is almost always interested in the consequences of intentional, deliberate actions undertaken to reduce taxes relative to income. Therefore, it is crucial that such research disting ...
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Journal ArticleContemporary Accounting Research · September 1, 2023
We quantify the immediate net effect of the Tax Cuts and Jobs Act (TCJA) on the tax burden of corporate profits for public US corporations. We find similar reductions in effective tax rates for domestic and multinational firms, yet the entirety of multinat ...
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Journal ArticleContemporary Accounting Research · October 1, 2022
Economists broadly agree that the economic burden of corporate taxes is not entirely borne by shareholders but also borne in part by employees and consumers. We examine corporate tax avoidance in a setting where shareholders do not bear the entire economic ...
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Journal ArticleEuropean Accounting Review · January 1, 2022
In this study, we examine the trade-offs between earnings management (both accruals and real) and covenant violations by examining how they are associated with future accounting and stock market performance. We analyze a matched-pair sample of covenant vio ...
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Journal ArticleJournal of Accounting Research · June 1, 2020
Although subsidiary disclosures in firms’ filings with the Securities and Exchanges Commission (SEC; Exhibit 21) represent the most granular required public disclosure of a firm's geographic footprint, little is understood about the quality of the disclosu ...
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Journal ArticleAccounting Review · March 1, 2019
We investigate the relation between tax avoidance and tax uncertainty, where tax uncertainty is the amount of unrecognized tax benefits recorded over the same time period as the tax avoidance. On average, we find that tax avoiders, i.e., firms with relativ ...
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Journal ArticleContemporary Accounting Research · June 1, 2017
We study managers’ interventions in financial reporting by examining working capital deficits, measured as current ratios less than 1.0. Current ratios represent important balance sheet liquidity indicators to lenders and creditors, and have an identifiabl ...
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Journal ArticleJournal of Financial Economics · June 1, 2017
We investigate systematic changes in corporate effective tax rates over the past 25 years and find that effective tax rates have decreased significantly. Contrary to conventional wisdom, the decline in effective tax rates is not concentrated in multination ...
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Journal ArticleJournal of Accounting Research · May 1, 2017
Using a sample of firms that disclose the realizations of earnings used for determining covenant compliance in loan contracts, we provide direct evidence on the informational properties of earnings used in the performance covenants included in debt contrac ...
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Journal ArticleAccounting Review · November 1, 2016
When a U.S. multinational corporation shifts income from the U.S. to foreign jurisdictions, it incurs costs and reaps benefits. The benefits may be reduced if the shifted income must be returned to the U.S. as a dividend in the short term and face the same ...
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Journal ArticleJournal of Accounting Research · March 1, 2016
We use a shock to the public scrutiny of firm subsidiary locations to investigate whether that scrutiny leads to changes in firms' disclosure and corporate tax avoidance behavior. ActionAid International, a nonprofit activist group, levied public pressure ...
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Journal ArticleJournal of Accounting and Economics · April 1, 2015
We examine the global equity supply chains of U.S. multinationals to explore how tax and nontax country characteristics affect whether firms use foreign holding companies and where they locate them. We find that U.S. multinationals supply equity from headq ...
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Journal ArticleJournal of Financial Economics · June 1, 2013
We examine whether Delaware is a domestic tax haven. We find that taxes play an economically important role in determining whether U.S. firms locate subsidiaries in Delaware and that a Delaware-based state tax avoidance strategy lowers state effective tax ...
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Journal ArticleJournal of Business Finance and Accounting · September 1, 2012
Religion has been shown to influence economic choices and outcomes in a variety of contexts. Honesty and risk aversion are two social norms forwarded to characterize the religious. Using the level of religious adherence in the county of a US firm's headqua ...
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Journal ArticleReview of Accounting Studies · September 1, 2012
Despite decades of research on how, why, and when companies manage earnings, there is a paucity of evidence about the geographic location of earnings management within multinational firms. In this study, we examine where companies manage earnings using a s ...
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Journal ArticleAccounting Review · July 1, 2010
This study investigates whether individual top executives have incremental effects on their firms' tax avoidance that cannot be explained by characteristics of the firm. To identify executive effects on firms' effective tax rates, we construct a data set t ...
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Journal ArticleJournal of Accounting Research · December 1, 2009
This paper investigates the effect tax havens and other foreign jurisdictions have on the income tax rates of multinational firms based in the United States. We develop a new regression methodology using financial accounting data to estimate the average wo ...
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Journal ArticleAccounting Review · January 1, 2008
We develop and describe a new measure of long-run corporate tax avoidance that is based on the ability to pay a low amount of cash taxes per dollar of pre-tax earnings over long time periods. We label this measure the "long-run cash effective tax rate." We ...
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