This study examines whether the sustainability of a firm’s tax strategy provides information about the persistence of a firm’s pre-tax earnings and earnings components. We also investigate whether investors are able to determine the sustainability of a firm’s tax strategy and use it as a...

This study examines the determinants and consequences of tax service provider choice among not-for-profit (NFP) organizations. Understanding how clients choose among professional services firms for tax services is important both because of the economic significance of tax service revenues to...

In this study, we explore the association between company reputation and the likelihood of a financial statement restatement (i.e., a revealed misstatement). We focus on restatements because they are one of the most visible forms of impaired financial reporting quality, and we suggest that...

We examine how the threat of low-cost activism (implemented by small shareholders) affects firms’ tax avoidance. Due to the lack of superior private information, small shareholders rely more on public information and may intervene in response to unfavorable earnings. Thus, as heightened...

This study investigates how acquirers manage earnings between an acquisition announcement and deal completion (defined as the interim period of acquisitions). We find that acquirers manage their earnings downwards during this interim period and boost reported earnings in the following period....

This study investigates subnational (state) tax competition for mobile business capital and employment. We focus on business income apportionment formulas (i.e., the weights placed on property, employment, and sales to determine how multijurisdictional companies' income will be allocated among...

This study examines the effects of audit partner tenure and audit partner changes on internal control reporting quality for large U.S. not-for-profit (NFP) organizations. Regulators contend that audit partners lose their objectivity over successive audits, reducing audit quality. A large body of...

We develop an analytical model of nonprofit tax reporting behavior and then examine the organization-specific characteristics that are associated with two measures of aggressive tax reporting. Our first measure is based on a distributional analysis which finds that an abnormally large number of...

Recent research on initial fee discounting attributes prior evidence to measurement error related to audit fees' partial-year reporting. However, DeAngelo (1981) suggests that fee discounting occurs for competitively selected audit firms, which might not happen in all instances of audit firm...

This study examines the effects of audit partner tenure and audit partner changes on internal control reporting quality for large U.S. not-for-profit (NFP) organizations. Regulators contend that audit partners lose their objectivity over successive audits, reducing audit quality. A large body of...