Author
Terry Shevlin
Other affiliations: University of California, Berkeley, Monash University, University of California ...read more
Bio: Terry Shevlin is an academic researcher from University of California, Irvine. The author has contributed to research in topics: Tax avoidance & Earnings. The author has an hindex of 60, co-authored 161 publications receiving 13642 citations. Previous affiliations of Terry Shevlin include University of California, Berkeley & Monash University.
Topics: Tax avoidance, Earnings, Corporate tax, Value-added tax, Indirect tax
Papers published on a yearly basis
Papers
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TL;DR: This paper found that family firms are less tax aggressive than their non-family counterparts, ceteris paribus, and that family owners are willing to forgo tax benefits in order to avoid the non-tax cost of a potential price discount, which can arise from minority shareholders' concern with family rent-seeking masked by tax avoidance activities.
Abstract: Taxes represent a significant cost to the firm and shareholders, and it is generally expected that shareholders prefer tax aggressiveness. However, this argument ignores potential non-tax costs that can accompany tax aggressiveness, especially those arising from agency problems. Firms owned/run by founding family members are characterized by a unique agency conflict between dominant and small shareholders. Using multiple measures to capture tax aggressiveness and founding family presence, we find that family firms are less tax aggressive than their non-family counterparts, ceteris paribus. This result suggests that family owners are willing to forgo tax benefits in order to avoid the non-tax cost of a potential price discount, which can arise from minority shareholders' concern with family rent-seeking masked by tax avoidance activities (Desai and Dharmapala 2006). This inference is further strengthened by our finding that family firms without long-term institutional investors (as outside monitors) and family firms expecting to raise capital exhibit even lower tax aggressiveness. Our result is also consistent with family owners being more concerned with the potential penalty and reputation damage from an IRS audit than non-family firms. We obtain similar inferences when using a small sample of tax shelter cases.
1,202 citations
TL;DR: This article found that family firms are less tax aggressive than their non-family counterparts, ceteris paribus, which suggests that family owners are willing to forgo tax benefits to avoid the non-tax cost of a potential price discount, which can arise from minority shareholders concerned with family rent-seeking masked by tax avoidance activities.
973 citations
TL;DR: In this article, the authors examine whether executive stock options (ESO) provide managers with incentives to invest in risky projects and find evidence that ESO risk incentives has a positive relation with future exploration risk taking.
648 citations
TL;DR: In this article, the authors trace the development of archival, microeconomic-based, empirical income tax research in accounting over the last 15 years, focusing on coordination of tax and non-tax factors, effects of taxes on asset prices, and taxation of multijurisdictional (international and interstate) commerce.
637 citations
TL;DR: In this paper, the authors show that the accrual anomaly documented by Sloan (1996) is concentrated in firms with high idiosyncratic stock return volatility making it risky for risk-averse arbitrageurs to take positions in stocks with extreme accruals.
466 citations
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01 May 1981
TL;DR: This chapter discusses Detecting Influential Observations and Outliers, a method for assessing Collinearity, and its applications in medicine and science.
Abstract: 1. Introduction and Overview. 2. Detecting Influential Observations and Outliers. 3. Detecting and Assessing Collinearity. 4. Applications and Remedies. 5. Research Issues and Directions for Extensions. Bibliography. Author Index. Subject Index.
4,948 citations
TL;DR: This paper found that the majority of managers would avoid initiating a positive NPV project if it meant falling short of the current quarter's consensus earnings, and more than three-fourths of the surveyed executives would give up economic value in exchange for smooth earnings.
4,341 citations
TL;DR: In this article, the tax impact of foreign investors' interests within a host developing economy was examined, and the analysis of the dynamic panel data with a system GMM estimator showed significant positive relationships between foreign investors interests and the measures of corporate tax avoidance among large Malaysian companies.
3,631 citations
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01 Apr 2010TL;DR: In this paper, the major uses and adaptations of stakeholder theory across a broad array of disciplines such as business ethics, corporate strategy, finance, accounting, management, and marketing are reviewed.
Abstract: For the last 30 years a growing number of scholars and practitioners have been experimenting with concepts and models that facilitate our understanding of the complexities of today’s business challenges. Among these, “stakeholder theory” or “stakeholder thinking” has emerged as a new narrative to understand and remedy three interconnected business problems—the problem of understanding how value is created and traded, the problem of connecting ethics and capitalism, and the problem of helping managers think about management such that the first two problems are addressed. In this article, we review the major uses and adaptations of stakeholder theory across a broad array of disciplines such as business ethics, corporate strategy, finance, accounting, management, and marketing. We also evaluate and suggest future directions in which research on stakeholder theory can continue to provide useful insights into the practice of sustainable and ethical value creation.
2,778 citations