This paper analyzes externalities of patent box regimes in Europe. Tax reductions in foreign affiliates of a firm that also provide a profit shifting opportunity reduce the user cost of capital and thereby increase domestic investment. We test this mechanism for the case of research activity. By...

This study examines strategic alliances as channels for tax knowledge diffusion between firms. Although strategic alliances are primarily expected to foster their main business purposes, we focus on whether tax knowledge potentially diffuses as a second order effect of peer-to-peer cooperation....

This study examines the impact of auditors’ exposure to PCAOB inspection on their clients’ tax planning effectiveness. PCAOB inspections commonly scrutinize the auditing of income taxes. We posit that auditors’ tax-related knowledge increased in response to the onset of this scrutiny and...