Showing papers in "Journal of The American Taxation Association in 2020"
TL;DR: In this article, the authors use path analysis to investigate how corporate tax avoidance is priced in bond yields and bank loan spreads, and they find that approximately one half of the total effect of tax avoidance on bond yields is explained through the negative effect on future pre-tax cash flow levels and volatility and, to a lesser extent, lower information quality.
Abstract: We use path analysis to investigate how corporate tax avoidance is priced in bond yields and bank loan spreads. We find that approximately one half of the total effect of tax avoidance on bond yields is explained through the negative effect of tax avoidance on future pre-tax cash flow levels and volatility and, to a lesser extent, lower information quality. The effects of these mediating variables are much less pronounced for bank loan spreads. The results of additional cross-sectional analyses indicate that, relative to bond investors, banks are able to reduce information asymmetry problems more effectively, given their access to firms’ private information and greater ability to monitor borrowers.
33 citations
TL;DR: In this paper, the role of internal control in tax avoidance by evaluating the efficacy of the COSO framework in tax risk management was studied, and the authors used a comprehensive COCO-based index in China.
Abstract: We study the role of internal control in tax avoidance by evaluating the efficacy of the COSO framework in tax risk management. First, we use a comprehensive COSO-based index in China that...
23 citations
TL;DR: The authors investigated the extent to which analysts incorporate tax-based earnings information into their earnings forecasts relative to other earnings information, and found that analysts' expectations for tax-sensitive information were higher than other information.
Abstract: This paper investigates the extent to which analysts incorporate tax-based earnings information into their earnings forecasts relative to other earnings information. We find that analysts'...
14 citations
TL;DR: The authors examine how the relation between taxpayers and their government affects tax evasion and examine how perceived influence over government policymaking affects firms' decisio-decision-making process in tax evasion.
Abstract: We examine how the relation between taxpayers and their government affects tax evasion. Specifically, we examine how perceived influence over government policymaking affects firms' decisio...
14 citations
TL;DR: This article examined the association between CEO severance pay (i.e., payment a CEO would receive if s/he is involuntarily terminated) and corporate tax planning activities, and they found that the relationship was not causal.
Abstract: We examine the association between CEO severance pay (i.e., payment a CEO would receive if s/he is involuntarily terminated) and corporate tax planning activities. We find that CEO severance pay is...
12 citations
TL;DR: The authors experimentally investigate how tax authority responsibility for preventing identity theft and tax authority responsiveness following identity theft influence taxpayers' trust in the tax authority, and find that tax authority's responsiveness following ID theft influences their trust in tax authority.
Abstract: We experimentally investigate how tax authority responsibility for preventing identity theft and tax authority responsiveness following identity theft influence taxpayers' trust in the tax...
7 citations
TL;DR: In this paper, the effect of legal environment on corporate state income tax avoidance was examined and it was found that the extent of penalties on corporate officers reduces state tax avoidance, however, they did not find that the penalties themselves reduced tax avoidance.
Abstract: This study examines the effect of legal environment on corporate state income tax avoidance. We find that the extent of penalties on corporate officers reduces state tax avoidance. However, we find...
5 citations
TL;DR: In this paper, Lim and Lustgarten demonstrate that firms manage earnings through the permanently reinvested earnings designation using the backing-out methodology, however, they do not demonstrate that permanently reinvesting earnings is beneficial.
Abstract: Krull (2004) finds evidence that firms manage earnings through the permanently reinvested earnings designation using the backing-out methodology. However, Lim and Lustgarten (2002) demonstrate that...
4 citations
TL;DR: In this article, the authors provide new insights about how tax professionals' economic and social relationships with clients separately and jointly affect tax professionals propensity to recommend aggressive tax tax rates to their clients.
Abstract: This study provides new insights about how tax professionals' economic and social relationships with clients separately and jointly affect tax professionals' propensity to recommend aggressive tax ...
4 citations
TL;DR: As the U.S. dollar (USD) strengthens relative to foreign currencies, the value of foreign subsidiary-to-parent dividends decreases, and the foreign tax credit remains anchored at a blended rate.
Abstract: As the U.S. dollar (USD) strengthens relative to foreign currencies, the USD value of foreign subsidiary-to-parent dividends decreases, and the foreign tax credit remains anchored at a blended rate...
3 citations
TL;DR: In this paper, the authors investigate the stock price and trading volume effects of differential capital gains taxes applied to short and long-term capital gains when firms disclose public information, and show that the effect of such taxes on stock prices and trading volumes is large.
Abstract: We investigate the stock price and trading volume effects of differential capital gains taxes applied to short- and long-term capital gains when firms disclose public information. We exten...
TL;DR: In this article, the impact of the internal controls over financial reporting requirements (ICFR) on the decision making of corporate tax executives is investigated. And the authors examine tax executives' decis...
Abstract: This study investigates the impact of the internal controls over financial reporting requirements (ICFR) on the decision making of corporate tax executives. I examine tax executives' decis...