This study examines the decisions of firms to voluntarily disclose tax fees paid to their external auditors. Although the Securities and Exchange Commission (SEC) began requiring public companies to disclose fees paid to auditors in 2000, separate disclosure of tax service fees as a component of...

We consider accounting from an evolutionary perspective. Accounting encompasses the creation of transactional records, the summarization of records in t-accounts, and the preparation of audited financial statements. Accounting's history spans at least 10,000 years dating back to the first human...

Accounting research productivity has acquired mythic characteristics. What constitutes productivity in accounting research, in particular financial accounting research, has for decades not been measured by the amount of work that is required to generate publishable research, but by the quantity...

We examine whether companies voluntarily disclose additional information about tax loss carryforwards when the recoverability is more uncertain. With this study, we aim to explain part of the huge cross-sectional variation in the tax footnote. To assess disclosure behavior, we hand-collect data...

In this paper, we study spatial competition in the U.S. audit market while accounting for its two-tiered nature. We provide evidence on the differential impact that market share distances within and between the players in the large and small audit markets have on competition. We find that the...

Objective – This research aims to obtain the empirical evidence on the influence of dividend policy, income tax, firm size, profitability, and leverage on income smoothing.Methodology/Technique – In this research, income smoothing is proxied with the Eckel index and logistic regression is...

While tax avoidance strategies result in greater after-tax cash flows, they can involve uncertain future outcomes, which can impose significant costs on firms. Thus, the extent to which tax avoidance increases firm risk is unclear. This paper re-examines the relation between tax avoidance and...

This article examines charitable contributions in the partnership context and the unintended tax arbitrage that occurs under section 704(d) of the Internal Revenue Code of 1986, as amended. Under the current law pursuant to Treas. Reg. § 1.704-1(d)(2) a partner’s distributive share of losses...

We examine a duopolistic setting in which firms pre-announce their future competitive decisions (e.g. prices, production quantities, capacity investments) before they actually undertake them. We show that firms overstate their future actions in their pre-announcements, and that their real action...

Investors have strong economic incentives to engage in unbiased information search in order to maximize the expected value of their investments. I examine whether an investor's psychological preference for information that supports his past investment decisions dominates his economic incentive...