We examine which tax allocation system leads to more severe distortions with respect to locational investment decisions. We consider separate accounting (SA) and formula apportionment (FA). The effects of both systems have been hotly debated in Europe in the past years. The reason is that the EU...

We examine which tax allocation system leads to more severe distortions with respect to locational investment decisions. We consider separate accounting (SA) and formula apportionment (FA). The effects of both systems have been hotly debated in Europe in the past years. The reason is that the EU...

The objective of this paper is to examine the risk-related premiums of disclosed audit fees in the Austrian and German markets for audit services. The idea of the paper is to determine a risk-free, entity-specific audit fee. By comparing this fee with the disclosed audit fee, we determine...

In intra‐group finance hybrid instruments allow for tailor‐made form of finance. Hence hybrid finance is often used for international tax planning in multinational groups.Due to a lack of international tax harmonization or tax coordination qualification conflict can arise. A specific hybrid...

We discuss the combined effects of tax convexity, limited liability and leverage on risk-taking. First, we focus on a risk-averse investor who is indifferent to equity-finance a risky asset in a pre-tax setting. We derive the after-tax marginal prices for risk-averse investors. Symmetric...

Financial crises induced an intense debate about different accounting models for credit losses and a large number of contributions in literature. A gap between accounting research and finance was revealed. Within this gap our paper is focused on accounting for default risk of bonds according to...

The effects of taxes have been discussed in almost every decision context in the extant literature, but the relationship between taxes and auditing has amazingly merited little attention. We explore the relationship between audit effort, audit quality and taxes from the perspective of both...