The tax auditing context is illustrative of a more general set of situations in which regulators attempt to extract information from entities over whom they have oversight (Border and Sobel 1987). Hence evaluating the impact of various features of the tax setting can provide important insights...

This study extends the Beck, Davis, and Jung (1992) experimental study by incorporating opportunities for taxpayer subjects to purchase advice before making their tax reporting decisions. Tax advice has two roles in the model and experiment. First, the tax advice allows taxpayers an opportunity...

The tax auditing context is illustrative of a more general set of situations in which regulators attempt to extract information from entities over whom they have oversight (Border and Sobel 1987). Hence evaluating the impact of various features of the tax setting can provide important insights...

The consequences of a penalty exemption available to U.S. taxpayers who disclose aggressive reporting positions is examined via a game theoretic model. Results indicate that (i) the tax agency's expected revenue collections (net of audit costs) decline under the disclosure exemption, and (ii)...

In Korea, there is a general tendency for controlling shareholders to transfer the ownership of their companies to the next generation. In this paper, we investigate whether Korean controlling shareholders attempt to influence stock prices when they transfer stock to related parties as gifts....

During the late 1990s, the SEC alleged that banks were overstating loan loss allowances to establish cookie jar reserves. Their intervention in bank accounting culminated in 2001 with new guidance (SAB 102) designed to improve financial reporting quality. We show that banks' allowance estimation...