Do Property Taxes Affect Real Operating Decisions and Market Prices for Crude Oil?

• 成果类型: Article
• 署名作者: Allee, Kristian D.; Lynch, Daniel P.; Petroni, Kathy R.; Schroeder, Joseph H.
• 署名单位: University of Wisconsin System; University of Wisconsin Madison; Michigan State University; Indiana University System; Indiana University Bloomington
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12086
• 发表日期: 2015
• 页码: 736-+
• 关键词: economic-development; firm location; state; incentives; IMPACT

摘要

This study investigates the effect of personal property taxes (PPTs) on real business decisions. Consistent with tax avoidance, we posit that PPTs are associated with decreases (increases) in inventory prior to (following) calendar year-end assessment dates. We empirically test this prediction using monthly crude oil inventory data. We find that in locations where crude oil inventory is subject to taxation, total and refinery-level crude oil inventories are reduced prior to assessment dates and increased in the following period, when compared to locations with no tax. The results provide empirical evidence that PPTs play a role in the operating decisions of firms. We also examine the pricing implications of these taxdriven changes in crude oil inventory and find that the market seemingly adjusts crude oil prices around assessment dates demonstrating that the market acts as if it understands these changes in crude oil inventory are not simply due to supply and demand effects.