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作者：Amberger, Harald J.; Markle, Kevin S.; Samuel, David M. P.
作者单位：Vienna University of Economics & Business; Michigan State University; Michigan State University's Broad College of Business; University of Wisconsin System; University of Wisconsin Madison; Vienna University of Economics & Business
摘要：Using a global sample of multinational corporations (MNCs) and their foreign subsidiaries, we find that repatriation taxes impair subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central management of the MNC and the manager of the foreign subsidiary being the driver, we show that this effect is concentrated in subsidiaries with high information asymmetry and in subsidiaries that are weakly monitored. Quasi-natural experiments in the U.K. and Japan ...
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作者：Black, Jonathan; Ham, Charles G.; Kimbrough, Michael D.; Yee, Ha Yoon
作者单位：Purdue University System; Purdue University; Indiana University System; IU Kelley School of Business; Indiana University Bloomington; University System of Maryland; University of Maryland College Park; City University of Hong Kong
摘要：Firms face a greater risk of lawsuits for overstated rather than understated earnings or net assets, suggesting conservatism can reduce firms' expected legal costs. Because managers with legal expertise are more likely than other managers to recognize the legal benefits of conservatism, this study examines whether legal expertise among members of senior management promotes greater conservatism. Consistent with this prediction, we find that firms with a general counsel (GC) in senior management...
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作者：Bauckloh, Tobias; Hardeck, Inga; Inger, Kerry K.; Wittenstein, Patrick; Zwergel, Bernhard
作者单位：Universitat Kassel; University of Regensburg; Auburn University System; Auburn University; University of Hamburg; Universitat Kassel
摘要：This research examines spillover effects of tax avoidance on peers' firm value using the setting of the European Commission's state aid investigations of private letter rulings. We assume that news about a firm's tax avoidance strategies also reveals information about peers' tax avoidance because investors expect similar firms to use similar strategies. Based on an event study design, we show that news about potential costs of tax avoidance of targeted U.S. multinational firms leads to negativ...
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作者：Chen, Qi; Schipper, Katherine; Zhang, Ning
作者单位：Duke University; Queens University - Canada
摘要：We develop and validate an empirical measure of the informativeness of accounting assets in measuring firm-specific economic capital, an important determinant of both cash flows and intrinsic values. Our validation tests show that the asset informativeness measure is sensitive to differences in both accounting methods and implementation decisions at the firm level and corresponds to the way equity investors use the information in accounting assets. We find that accounting assets contain substa...
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作者：Wang, Jingjing
作者单位：University of Calgary
摘要：The going concern (GC) assumption forms the basis for preparing financial statements unless liquidation becomes imminent. ASU 2014-15 requires management to evaluate GC uncertainties quarterly and provide disclosures in the notes. I compare management GC disclosures between the pre-standard and poststandard regimes. I find that the market reacts negatively to substantial doubt in GC only after ASU 2014-15. Next, I find the effect of ASU 2014-15 for quarterly reports, but not annual reports. Mo...
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作者：Chen, Jing; Dou, Yiwei; Zou, Youli
作者单位：Stevens Institute of Technology; New York University; University of Connecticut
摘要：Effective in 2009, SFAS 161 requires enhanced disclosures about derivative use and hedging activities. We test for changes to the information environment of firms whose disclosure policy is unaffected by this standard directly. Using a sample of non-users of derivatives, we find an increase in stock liquidity after their critical customers expand derivative disclosures under SFAS 161. The effect persists for one year and becomes insignificant in subsequent years as the firms dial back their vo...
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作者：Mehta, Mihir N.; Reeb, David M.; Zhao, Wanli
作者单位：University of Michigan System; University of Michigan; National University of Singapore; Bocconi University
摘要：We investigate whether corporate insiders attempt to circumvent insider trading restrictions by using their private information to facilitate trading in economically linked firms, a phenomenon we call shadow trading.'' Using measures of informed trading to proxy for shadow trading, we find increased levels of informed trading among business partners and competitors before a firm releases private information. To rule out alternative explanations, we examine two shocks to insiders' incentives to...
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作者：Ege, Matthew S.; Hepfer, Bradford F.; Robinson, John R.
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School
摘要：Social hierarchy theory predicts that the power and status of an organizational function have a first-order effect on the function's ability to influence outcomes. We find that the rank of the title of the top tax executive is positively associated with tax planning after controlling for treatment effects. Our inferences remain when (1) using changes in the size of the c-suite as a shock to the relative power and status of the tax function, and (2) examining promotions and demotions in title r...
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作者：Breuer, Matthias; Hombach, Katharina; Mueller, Maximilian A.
作者单位：Columbia University; Carl von Ossietzky Universitat Oldenburg; University of Cologne
摘要：We predict and find that regulated firms' mandatory disclosures crowd out unregulated firms' voluntary disclosures. Consistent with information spillovers from regulated to unregulated firms, we document that unregulated firms reduce their own disclosures in the presence of regulated firms' disclosures. We further find that unregulated firms reduce their disclosures more the greater the strength of the regulatory information spillovers. Our findings suggest that a substitutive relationship bet...
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作者：Acito, Andrew A.; Nessa, Michelle
作者单位：Virginia Polytechnic Institute & State University; Michigan State University; Michigan State University's Broad College of Business
摘要：We provide large sample evidence of law firms facilitating U.S. publicly traded companies' tax planning, investigate when evidence of law firm involvement is strongest, and examine some tax planning mechanisms law firms facilitate. Because companies' tax planning relationships with law firms are not publicly observable, we use litigation filings and SEC comment letters to identify companies' observable law firm relationships. We find a positive association between companies' tax planning and t...
