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...

We examine large U.S. corporations' off-balance sheet financing over the period 1989-2001. We construct firm-level proxies of off-balance sheet debt by comparing firms' tax return vs. financial statement reporting for interest expense and debt. Our results indicate that firms' financial...

We provide archival evidence of the effect of tax and non-tax costs on book-tax reporting using tax return data on public and private manufacturing firms. Prior research suggests that managers should conform their book-tax income to minimize tax-related costs. However, book-tax reporting...

As companies become more global, there is continuing interest regarding the influence of tax incentives on firms' U.S. versus foreign income reporting. Using confidential U.S income tax return data and international financial data, we examine how the income reporting of foreign-controlled U.S....

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...

Using a matched sample of financial data on foreign multinationals and confidential income tax return data on U.S. foreign–controlled corporations (FCCs) during 1987–1996, we examine whether the tax incentives of foreign multinationals influence their U.S. tax reporting. We find that foreign...