We provide evidence on how statutory corporate tax rate changes affect income-shifting behavior. Our difference-in-differences identification strategy exploits the 112 staggered changes in corporate income tax rates across the 33 U.S. states during the period 1989-2012. We find that accounting...

A firm's deferred tax position can affect its incentives to lobby for or against tax reform, as well as how the firm is affected by a transition from one tax regime to another. We compile disaggregated deferred tax position data for a sample of large U.S. firms between 1993 and 2004 to analyze...

Objective – This research examines the effect of company size, changes in out-cash flow, return on assets, conservatism, and profit levelling on earnings management.Methodology/Technique – The results of this research show that banking capital structure, capital intensity, intensity of...

Prior literature is mixed as to whether smoothing through accruals indicates higher or lower financial reporting quality (Tucker and Zarowin 2006; Jayaraman 2008; Dechow et al. 2010). Motivated by the unique inter-temporal features and reporting incentives of tax expense, we provide new evidence on this...

This paper examines the asset write-off behavior of loss firms in response to tax rule changes. In particular, we investigate two simultaneous changes in tax loss carryforward offsetting in opposite directions in Germany and France. Understanding if and how tax losses affect firms’ financial...

We investigate a previously overlooked type of non-tax cost associated with tax avoidance: the potential loss of earnings informativeness. Expected benefits from corporate tax planning include positive effects on after-tax earnings and an increase in firm value. However, tax avoidance can entail...

In this paper, we present a review of tax research in accounting. We outline U.S. GAAP accounting rules for the following four income tax notes and survey the area of research literature dealing with the information content provided by U.S. GAAP: (1) unrecognized tax benefits, (2) valuation...

A firm's deferred tax position can influence how it is affected by a transition from one tax regime to another. We compile disaggregated deferred tax position data for a sample of large U.S. firms between 1993 and 2004 to explore how these positions might affect firm behavior before and after a...

A firm's deferred tax position can influence how it is affected by a transition from one tax regime to another. We compile disaggregated deferred tax position data for a sample of large U.S. firms between 1993 and 2004 to explore how these positions might affect firm behavior before and after a...