Using a hand-collected sample of U.S. multinational firms’ foreign and domestic cash holdings, we evaluate the earnings persistence implications of changes in foreign and domestic cash and whether stock prices reflect such implications. Building on the earnings decomposition approach in...

We exploit an exogenous shock to analyst coverage as a result of brokerage house mergers and closures to examine whether financial analysts influence the tax-planning activities of the firms they cover. Using a difference-in-differences design, we find that, on average, firms affected by broker...

Harris and O’Brien (2018) investigate whether U.S. tax policy distorts U.S. multinationals’ (MNCs) investment. They find that MNCs facing higher repatriation tax costs engage in fewer domestic acquisitions. The study re-examines the results in two prior studies that found no effect (Hanlon...

When reporting after-tax non-GAAP earnings, firms are required to adjust for the tax effects of exclusions. Since 2010, the SEC has issued and updated Compliance and Disclosure Interpretations (hereafter, C&DIs) which specifically require firms to disclose the tax effects of exclusions. We...