The arm's-length principle of transfer pricing requires that transactions between related entities be undertaken at prices and on terms and conditions that would exist between entities dealing at arm's length. Applying the arm's-length principle to employee stock options introduces practical and...

We examine the impact on taxpayer compliance of corrupt auditors seeking bribes in the form of a percentage of taxes payable. The first experiment examines a setting where a taxpayer can choose to report higher income in the presence of a corrupt auditor to reduce the bribe on the under-reported...

We examine the association between societal trust and the levels of CEO compensation and the proportion of equity-based compensation of 897 firm-years from 18 countries over the 2007- 2013 period. We find both the levels of CEO compensation as well as the proportion of equity based compensation...

Canadian firms face a trade-off between reporting higher accounting income and paying lower taxes that arises from their ability to cancel in-the-money executive stock options and making a substitute cash payment to the executive instead of issuing shares. Firms' trade-off hypotheses are...

This study explores the effects of financial and tax reporting incentives on options granted to chief executive officers in Canada. Extant studies with a similar purpose (Yermack, 1995, and Matsunaga, 1995) explore predominantly non-qualified U.S. option grants that are deductible to the extent...

Recent studies have documented an association between managerial compensation and firm dividend policy. Bhattacharyya (2000) develops a model of dividend payout that is based in the principal-agent paradigm. In Bhattacharyya's model, managerial quality and effort are unobservable to shareholders...

This study examines taxpayer compliance in the presence and absence of collusively corrupt taxauditors and compares it to taxpayer compliance in the presence and absence of coercively corrupt tax auditors. Our experimental results show that overall taxpayer compliance declines in the presence of...