This research examines spillover effects of tax avoidance on peers' firm value using the setting of the European Commission's state aid investigations of private letter rulings. We assume that news about a firm's tax avoidance strategies also reveals information about peers' tax avoidance...

Using a two stage least squares regression with panel data on 46 U.S. states from 2006 to 2013, we examine the association between states' adoption of the domestic manufacturing deduction (DMD) and employment growth. We also investigate whether the relative certainty provided by the state tax...

This study examines the form of the association between tax reserves and firm value. I find firm value is increasing in tax reserves at a diminishing rate until an optimal level is reached, after which firm value is decreasing in tax reserves. This concave association is consistent with...

Recent literature finds that investors positively value tax management activities that reduce taxes paid. Yet recent press suggests a negative backlash against companies that do not pay their “fair share.” Little empirical evidence exists regarding investor perceptions of tax management. We...

Prior literature suggests that firms may bear reputational costs associated with corporate tax avoidance, which could in turn reduce the net present value of firms' tax planning strategies. Other research indicates that investors perceive corporate social responsibility (CSR) activities and tax...

The Loaded Leprechaun is a brewery/restaurant with locations around the U.S. At the end of their meal, patrons have the option to participate in the popular ‘‘Dollar Holler'' tradition, wherein they personalize a dollar bill and staple it to a surface in the restaurant. The case requires...

This paper examines the relative valuation of alternative methods of tax avoidance. Prior studies find that firm value is positively associated with overall measures of tax avoidance; I extend this research by providing evidence that investors distinguish between methods of tax reduction in their...