This paper tests how macroeconomic conditions affect the value relevance of book and tax income. Based on regression coefficient estimates, more than 8% in the value relevance of book income is dependent on the interaction with a proxy for the macroeconomy. For a possible policy change where tax...

Our study examines the tax reporting behaviors of firms just before they file for bankruptcy (“prebankruptcy firms”). Specifically, we investigate whether pre-bankruptcy firms engage in more aggressive tax reporting, in comparison to non-bankruptcy firms. We also investigate whether the...

We investigate the relationship between relationship between U.S. Treasury bill yields and the dividend yield of the S&P 500 in the period before and after the passage of the Jobs Growth Tax Relief Reconciliation Act (JGTRRA) in 2003. The results suggest that there is an upward pressure on the...

This study examines the relation between social concerns on firms' tax positions and their cost of equity. Corporate social performance can influence capital market processes but little empirical evidence has been presented yet in terms of the effects of tax disputes on shareholder preference. I...