Accounting estimates are susceptible to managerial errors and bias, thereby generating audit risk. Quantifying and understanding the determinants and consequences of auditors’ influence on clients’ accounting estimates is therefore important. Using a novel econometric technique, we estimate...

Increasing workplace diversity is a key component of the social pillar of environmental, social, and governance (ESG) activities. In this study, we use financial statement disclosures to identify firms that claim the Work Opportunity Tax Credit (WOTC), a federal tax program that incentivizes...

Global tax enforcement has received increased attention since the Financial Crisis, with much stated focus on curbing perceived harmful tax practices of multinational entities. Yet multinationals can avoid tax in multiple countries whereas domestic firms cannot. We therefore examine whether...

We use data envelopment analysis (DEA) to develop a measure of effective tax planning that is theoretically aligned with the Scholes-Wolfson paradigm and captures how efficiently firms maximize after-tax returns given their operating, investing, and financing decisions. We then (1) document the...