Download or read book The Effects of Executives on Corporate Tax Avoidance written by Scott Dyreng and published by . This book was released on 2012 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper 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 dataset that tracks the movement of 908 executives across firms over time. The results indicate that individual executives play a significant role in determining the level of tax avoidance that firms undertake. The economic magnitude of the executive effects on tax avoidance is large. Moving between the top and bottom quartiles of executives results in approximately an eleven percent swing in GAAP effective tax rates; thus, executive effects appear to be an important determinant in firms' tax avoidance.
Download or read book Taxes and Business Strategy written by Myron S. Scholes and published by . This book was released on 2015-01-03 with total page 528 pages. Available in PDF, EPUB and Kindle. Book excerpt: For MBA students and graduates embarking on careers in investment banking, corporate finance, strategy consulting, money management, or venture capital Through integration with traditional MBA topics, Taxes and Business Strategy, Fifth Edition provides a framework for understanding how taxes affect decision-making, asset prices, equilibrium returns, and the financial and operational structure of firms. Teaching and Learning Experience This program presents a better teaching and learning experience-for you and your students: *Use a text from an active author team: All 5 authors actively teach the tax and business strategy course and provide students with relevant examples from both classroom and real-world consulting experience. *Teach students the practical uses for business strategy: Students learn important concepts that can be applied to their own lives. *Reinforce learning by using in-depth analysis: Analysis and explanatory material help students understand, think about, and retain information.
Download or read book International Corporate Tax Avoidance A Review of the Channels Magnitudes and Blind Spots written by Sebastian Beer and published by International Monetary Fund. This book was released on 2018-07-23 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the rapidly growing empirical literature on international tax avoidance by multinational corporations. It surveys evidence on main channels of corporate tax avoidance including transfer mispricing, international debt shifting, treaty shopping, tax deferral and corporate inversions. Moreover, it performs a meta analysis of the extensive literature that estimates the overall size of profit shifting. We find that the literature suggests that, on average, a 1 percentage-point lower corporate tax rate will expand before-tax income by 1 percent—an effect that is larger than reported as the consensus estimate in previous surveys and tends to be increasing over time. The literature on tax avoidance still has several unresolved puzzles and blind spots that require further research.
Download or read book Tax Avoidance Activities of U S Multinational Corporations written by Sonja Lynne Olhoft and published by . This book was released on 1999 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Addressing Base Erosion and Profit Shifting written by OECD and published by OECD Publishing. This book was released on 2013-02-12 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report presents studies and data available regarding the existence and magnitude of base erosion and profit shifting (BEPS), and contains an overview of global developments that have an impact on corporate tax matters.
Download or read book The Role of Managerial Ability in Corporate Tax Avoidance written by Allison Koester and published by . This book was released on 2016 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to efficiently manage corporate resources engage in greater tax avoidance. Our results show that moving from the lower to upper quartile of managerial ability is associated with a 3.15 (2.50) percent reduction in a firm's one-year (five-year) cash effective tax rate (ETR). We examine how higher ability managers reduce income tax payments and find they engage in greater state tax planning activities, shift more income to foreign tax havens, make more R&D credit claims, and make greater investments in assets that generate accelerated depreciation deductions. Identifying a manager characteristic related to firms' tax policy decisions adds to our understanding of the factors that explain the substantial variation in corporate income tax payments across firms.
Download or read book Executive Inside Debt and Corporate Tax Avoidance written by Anna Alexander and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax and Corporate Governance written by Wolfgang Schön and published by Springer Science & Business Media. This book was released on 2008-03-12 with total page 423 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic research shows that well-known principal-agent and capital market problems are strongly influenced by tax considerations. Against this background, this volume is the first to present a fully-fledged overview of the interdependence of tax and corporate governance. Not only the basic political, legal and economic questions but also major topics like income measurement, shareholding structures, corporate social responsibility and tax shelter disclosure are covered.
Download or read book Tax Avoidance Research written by Antonio De Vito and published by Springer Nature. This book was released on with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Managerial Career Concerns and Corporate Tax Avoidance written by Ningzhong Li and published by . This book was released on 2018 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the effect of managers' career concerns on tax avoidance using the staggered recognition by state courts of the Inevitable Disclosure Doctrine (IDD), a trade secret protection doctrine which places greater restrictions on managers from joining or forming a rival company. We argue that the IDD recognition increases the cost of job loss for managers whose current jobs are in jeopardy thereby increasing their incentives to avoid taxes, improve performance, and favorably influence the current employer's assessment of their ability. The IDD recognition also reduces opportunities for managers who have better outside jobs, and thereby reduces their incentives to save taxes, improve performance, and favorably influence the external employers' assessment of their ability. Using a difference-in-differences design, we provide evidence consistent with these predictions. We further show these effects are stronger for CEOs in their early years of service, when the market is more uncertain about their ability.
Download or read book The Effect of Competitive Advantages on Corporate Tax Avoidance written by Andrew D. Almand and published by . This book was released on 2016 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recently, managers of U.S. corporations have explained the motivation behind engaging in extreme and public forms of tax avoidance (i.e. corporate inversions) as addressing the inability to gain or maintain global competitive advantages (Security 2014, 1). While prior research explores how a corporation’s overall business strategy can affect tax avoidance behavior (Higgins et al. 2015) and measures the effects of different components of competitive advantages on tax avoidance (Kubick et al. 2015; Gao et al. 2015), how total global competitive advantages impact tax avoidance remains an unanswered empirical question. Therefore, this study considers the following research questions: 1)How does the effective tax rate of a corporation affect the future competitive advantages of a corporation? and 2) How do competitive advantages affect future tax avoidance? To address these questions, this dissertation uses competitive effort proxies derived from accounting data (Dickinson and Sommers 2012), to develop a composite score measuring the corporation’s total global competitive advantages and examines the impact of total global competitive advantages on different proxies for tax avoidance. The results of several univariate and multivariable tests indicate that while effective tax rate measurements do not appear to inhibit the competitive advantages of corporations, corporate executives behave as if they believe the tax rate hinders their ability to compete; as competitive advantages rise, so does the likelihood that the corporation will engage in tax avoidance activities. However, a trend reversal occurs and those corporations with the highest competitive advantages decrease tax avoidance activities. An analysis of the corporations that invert show that they actually decrease in their competitive advantages in the second year after the inversion, which makes them significantly lower than their closest industry peers based on profitability. This study adds to the growing research on the determinants of tax avoidance. It also develops a new composite measurement of total global competitive advantages, which can be useful to future research in strategic management. The results of these analyses should also be of interest to legislators. Corporations continually call for legislation to overhaul the tax code; before doing so, legislators should be aware of the true determinants of problems (such as inversions) before trying to devise a solution.
Download or read book Tax Avoidance and Capital Structure written by Alessandro Gabrielli and published by Springer Nature. This book was released on 2023-05-23 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive overview of the implications of tax avoidance for a firm’s capital structure, highlighting the key role played by free cash flow and agency conflicts. First, the book provides an outline of the theories and empirical evidence concerning the role of taxes in the Theory of Capital Structure. It reviews the studies investigating the relationship between agency conflicts and capital structure. The book explores the role of free cash flow and agency conflicts in the relationship between tax avoidance and capital structure. In the final section, the results of an empirical investigation conducted on a sample of U.S. public firms are also presented. The empirical research examines whether and how tax avoidance is associated with debt covenant violation across the stages of the corporate life cycle. Specifically, the research uses the concept of the corporate life cycle stage to analyse whether and how the association between tax avoidance and debt covenant violation varies in different agency settings. Consistent with the hypotheses drawn on the Agency Theory, the findings of the empirical research suggest life cycle stages moderate the association between tax avoidance and debt covenant violation. Overall, this book sheds light on the potential implications of tax avoidance activities for a firm’s capital structure. The book will be of interest to both experienced and early-stage scholars interested in the topic. Moreover, the book will also be of interest to policymakers, investors, analysts, lenders, and other market participants.
Download or read book CEO After Tax Compensation Incentives and Corporate Tax Avoidance written by Fabio B. Gaertner and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: I examine the association between CEOs' after-tax incentives and their firms' level of tax avoidance. Economic theory holds that firms should compensate CEOs on an after-tax basis when the expected tax savings generated from additional incentive alignment outweigh the incremental compensation demanded by CEOs for bearing additional tax-related compensation risk. Using hand-collected data from proxy statements, I find a negative relation between the use of after-tax incentives and effective tax rates. I also find a positive association between the use of after-tax incentives and CEO cash compensation, suggesting that CEOs who are compensated on an after-tax basis demand a premium for bearing additional risk.
Download or read book Advances in Taxation written by John Hasseldine and published by Emerald Group Publishing. This book was released on 2024-06-20 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: Volume 31 of Advances in Taxation includes studies from expert contributors, exploring topics such as: firms’ domestic and foreign effective tax rates; tax avoidance; and tax compliance. A study reviews prior literature on tax increment financing, an economic development tool frequently used by U.S. local governments.
Download or read book The Effect of Media on Corporate Tax Avoidance written by Chia-Hsiang Weng and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Comparative Look at Regulation of Corporate Tax Avoidance written by Karen B. Brown and published by Springer Science & Business Media. This book was released on 2011-12-09 with total page 387 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume provides a fascinating look at the anti-tax avoidance strategies employed by more than fifteen countries in eastern and western Europe, Canada, the Pacific Rim, Asia, Africa, and the United States. It surveys the similarities and differences in anti-avoidance regimes and contains detailed chapters for each country surveying the moral and legal dimensions of the problem. The proliferation of tax avoidance schemes in recent years signals the global dimensions of a problem presenting a serious challenge to the effective administration of tax laws. Tax avoidance involves unacceptable manipulation of the law to obtain a tax advantage. These transactions support wasteful behavior in which corporations enter into elaborate, circuitous arrangements solely to minimize tax liability. It frustrates the ability of governments to collect sufficient revenue to provide essential public goods and services. Avoidance of duly enacted provisions (or manipulation to secure tax benefits unintended by the legislature) poses a threat to the effective operation of a free society for the benefit of a small group of members who seek the privilege of shifting their tax burden onto others merely to compete in the world of commerce. In a world in which world treasuries struggle for the resources to battle terrorist threats and to secure a decent standard of living for constituents tax avoidance can bring economies close to the edge of sustainability. As tax avoidance is one of the top concerns of most nations, the importance of this work cannot be overstated.
Download or read book The Routledge Companion to Tax Avoidance Research written by Nigar Hashimzade and published by Routledge. This book was released on 2017-10-02 with total page 676 pages. Available in PDF, EPUB and Kindle. Book excerpt: An inherently interdisciplinary subject, tax avoidance has attracted growing interest of scholars in many fields. No longer limited to law and accounting, research increasingly has been conducted from other perspectives, such as anthropology, business ethics, corporate social responsibility, and economic psychology. This was –recently stimulated by politicians, mass media, and the public focussing on tax avoidance after the global financial and economic crisis put a squeeze on private and public finances. New challenges were posed by changing definitions and controversies in the interpretation of tax avoidance concept, as well as a host of new rules and policies that need to be fully understood. This collection provides a comprehensive guide to students and academics on the subjects of tax avoidance from an interdisciplinary perspective, exploring the areas of accounting, law, economics, psychology, and sociology. It covers global as well as regional issues, presents a discussion of the definition, legality, morality, and psychology of tax avoidance, and provides guidance on measurement of economic effect of tax avoidance activities. With a truly international selection of authors from the UK, North America, Africa, Asia, Australasia, Middle East, and continental Europe, with well-known experts and rising stars of the field, the contributors cover the entire terrain of this important topic. The Routledge Companion to Tax Avoidance Research is a ground-breaking attempt to bring together scholarly research in tax avoidance, offering rigorous academic analysis of an important and hotly debated issue in a structured and balanced way.
