De Simone, Lisa; Klassen, Kenneth J.; Seidman, Jeri - 2018
Do firms balance tax and operating considerations when making investment decisions? We investigate whether income-shifting …-specific measure of the sensitivity of reported profits to cross-border tax incentives. Results suggest firms with below-median income-shifting …-median income-shifting aggressiveness exhibit no statistical relation. Our tests extend the literature on investment distortions by …