We examine whether firms use tax reserve decreases to meet analysts’ quarterly earnings forecasts in the period prior to the passage of FIN 48 and whether that behavior changed following the enactment of FIN 48. In the pre-FIN 48 period, we observe that firms reduce their tax reserves (i.e.,...

This study examines whether firms' advantage from lower explicit taxes (tax management) is mitigated by lower pre-tax incomes (implicit taxes) and whether this advantage creates sustainable competitive advantage. We investigate a sample of firms with low explicit tax rates prior to the enactment...

As a direct response to the recent trend in corporate expatriations, politicians have questioned the patriotism of firms that reorganize outside the U.S. and introduced numerous legislative proposals designed to prevent corporate expatriations. The implicit assumption made in proposing this...