In Korea, there is a general tendency for controlling shareholders to transfer the ownership of their companies to the next generation. In this paper, we investigate whether Korean controlling shareholders attempt to influence stock prices when they transfer stock to related parties as gifts....

Although prior studies provide evidence on the financial reporting incentives to inflate core earnings through classification shifting (e.g., shifting core expenses to income-decreasing non-core items), few examine the tax-related incentive to report lower core earnings through classification...

The consequences of a penalty exemption available to U.S. taxpayers who disclose aggressive reporting positions is examined via a game theoretic model. Results indicate that (i) the tax agency's expected revenue collections (net of audit costs) decline under the disclosure exemption, and (ii)...