We investigate whether the sustainability of firms' tax strategies is associated with corporate transparency. We expect and find that firms with sustainable tax strategies are associated with more transparent information environments. Prior research shows that transparency is associated with...

This study develops and validates an ex-ante measure of firm-specific overall tax risk. We define tax risk as the potential that current actions or activities, or the failure to take actions or pursue activities, will lead to future tax outcomes that are different from expectations. Tax risk...

This study uses insights from tax practitioners and tax authorities to define and develop an ex-ante estimate of tax risk that is independent of common tax outcomes studied in the literature. Validation tests confirm that our tax risk measure (1) captures the predictable and unpredictable...

This study examines whether the sustainability of a firm’s tax strategy provides information about the persistence of a firm’s pre-tax earnings and earnings components. We also investigate whether investors are able to determine the sustainability of a firm’s tax strategy and use it as a...

This study examines investors' response to the disclosure of prior period, auditor-waived misstatements under Staff Accounting Bulletin No. 108, Considering the effects of prior year misstatements when quantifying misstatements in the current year. Auditors' misstatement correction decisions...

This study examines the effects of audit partner tenure and audit partner changes on internal control reporting quality for large U.S. not-for-profit (NFP) organizations. Regulators contend that audit partners lose their objectivity over successive audits, reducing audit quality. A large body of...

Over the past two decades, most tax research has focused on examining the level of firms' effective tax rates (ETRs) (i.e., tax avoidance or tax minimization); limited attention has been paid to other aspects of tax strategies. However, relatively few firms pay exceedingly low taxes, which has...

We investigate whether firms' tax planning affects the accuracy of analysts' forecasts. Tax planning can exacerbate the complexity of firms' operations through strategic choices to exploit tax laws. Because of its effect on firms' operations, tax planning can influence analysts' efforts to...

This study examines managerial incentives and practices associated with firms' tax strategy choices, as well as the relative importance of these factors in determining the primary focus of firms' tax strategies. Understanding the determinants of firms' choice of tax strategy is important because...