Equity Risk Incentives and Corporate Tax Aggressiveness

Journal of Accounting Research

Volumn 50, Issue 3, 2012, Pages 775-810

  Rego, Sonja Olhoft ^a   Wilson, Ryan ^b  

^a INDIANA UNIVERSITY   (United States)

^b UNIVERSITY OF IOWA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84860496834     PISSN: 00218456     EISSN: 1475679X     Source Type: Journal    
DOI: 10.1111/j.1475-679X.2012.00438.x     Document Type: Article

References (43)

1. Armstrong, C. S.; J. L. Blouin; and D. F. Larcker. The Incentives for Tax Planning." Working paper, Stanford University and University of Pennsylvania, 2010.
2. Badertscher, B.; S. Katz; and S. Rego. The Impact of Private Equity Ownership on Portfolio Firm's Corporate Tax Planning." Working paper, University of Notre Dame, 2011.
3. Bebchuck, L.; A. Cohen; and A. Ferrell. What Matters in Corporate Governance? The Review of Financial Studies 22 (2008): 783-827.
4. Cazier, R.; S. Rego; X. Tian; and R. Wilson. Early Evidence on the Determinants of Unrecognized Tax Benefits." Working paper, University of Iowa and Texas Christian University, 2009.
5. Chen, S.; X. Chen; Q. Cheng; and T. Shevlin. Are Family Firms More Tax Aggressive Than Non-family Firms? Journal of Financial Economics 95 (2010): 41-61.
6. Cohen, D.; A. Dey; and T. Lys. The Sarbanes Oxley Act of 2002: Implications for Compensation Contracts and Managerial Risk-Taking." Working paper, Stern School of Business, 2009.
7. Coles, J. L.; N. D. Daniel; and L. Naveen. Managerial Incentives and Risk-Taking. Journal of Financial Economics 79 (2006): 431-68.
8. Core, J., and W. Guay. The Use of Equity Grants to Manage Optimal Equity Incentive Levels. Journal of Accounting and Economics 28 (1999): 151-84.
9. Crocker, K. J., and J. Slemrod. Corporate Tax Evasion with Agency Costs. Journal of Public Economics 89 (2005): 1593-1610.
10. Desai, M. A., and D. Dharmapala. Corporate Tax Avoidance and High-Powered Incentives. Journal of Financial Economics 79 (2006): 145-79.
11. Desai, M. A., and D. Dharmapala. Corporate Tax Avoidance and Firm Value." Working paper, Harvard University, 2007.
12. Dyreng, S.; M. Hanlon; and E. Maydew. The Effects of Executives on Corporate Tax Avoidance. The Accounting Review 85 (2010): 1163-89.
13. Frank, M.; L. Lynch; and S. Rego. Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting. The Accounting Review 84 (2009): 467-96.
14. Gaertner, F. B. CEO After-Tax Compensation Incentives and Corporate Tax Avoidance." Working paper, Nanyang Technological University, 2011.
15. Gleason, C.; M. Pincus; and S. O. Rego. Consequences of Material Weaknesses in Tax-Related Internal Controls for Financial Reporting and Earnings Management. Working paper, Indiana University, 2011.
16. Gompers, P.; J. Ishii; and A. Metrick. Corporate Governance and Equity Prices. The Quarterly Journal of Economics 118 (2003): 107-55.
17. Graham, J., and A. Tucker. Tax Shelters and Corporate Debt Policy. Journal of Financial Economics 81 (2006): 563-94.
18. Guay, W. R. The Sensitivity of CEO Wealth to Equity Risk: An Analysis of the Magnitude and Determinants. Journal of Financial Economics 53 (1999): 43-71.
19. Gupta, S., and K. Newberry. Determinants of the Variability in Corporate Effective Tax Rates: Evidence from Longitudinal Data. Journal of Accounting and Public Policy 16 (1997): 1-34.
20. Hanlon, M., and S. Heitzman. A Review of Tax Research. Journal of Accounting and Economics 50 (2010): 127-78.
21. Hanlon, M.; L. Mills; and J. Slemrod. An Empirical Examination of Corporate Tax Noncompliance," in Taxing Corporate Income in the 21st Century, edited by A. Auerbach, J. R. Hines Jr., and J. Slemrod. Cambridge: Cambridge University Press, 2005, 2007.
22. Hanlon, M.; S. Rajgopal; and T. Shevlin. Are Executive Stock Options Associated with Future Earnings? Journal of Accounting and Economics 36 (2003): 3-43.
23. Hanlon, M., and J. Slemrod. What Does Tax Aggressiveness Signal? Evidence from Stock Price Reactions to News About Tax Shelter Involvement. Journal of Public Economics 93 (2009): 126-41.
24. Jensen, M. Agency Costs of Overvalued Equity. Financial Management 34 (2005): 5-19.
25. Jensen, M., and W. Meckling. Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics 3 (1976): 305-60.
26. Kocieniewski, D. Where Pay for Chiefs Outstrips U.S. taxes." The New York Times, August 31, 2011.
27. Lisowsky, P. Seeking Shelter: Empirically Modeling Tax Shelters Using Financial Statement Information." Working paper, University of Illinois, 2010.
28. Manne, H. Mergers and the Market for Corporate Control. Journal of Political Economy 73 (1965): 110-20.
29. McGuire, S.; D. Wang; and R. Wilson. Dual Class Ownership and Tax Avoidance." Working paper, Texas A&M University, 2011.
30. Oler, M.; T. Shevlin; and R. Wilson. Examining Investor Expectations Concerning Tax Saving on Repatriations of Foreign Earnings Under the American Jobs Creation Act of 2004. Journal of the American Taxation Association 29 (2007): 25-55.
31. Phillips, J. Corporate Tax Planning Effectiveness: The Role of Compensation-Based Incentives. The Accounting Review 78 (2003): 847-74.
32. Porcano, T. Corporate Tax Rates: Progressive, Proportional, or Regressive. Journal of the American Taxation Association 8 (1986): 17-31.
33. Rajgopal, S., and T. Shevlin. Empirical Evidence on the Relation Between Stock Option Compensation and Risk Taking. Journal of Accounting and Economics 33 (2002): 145-71.
34. Rego, S. Tax-Avoidance Activities of U.S. Multinational Corporations. Contemporary Accounting Research 20 (2003): 805-33.
35. Robinson, J.; S. Sikes; and C. Weaver. Performance Measurement of Corporate Tax Departments. The Accounting Review 85 (2010): 1035-64.
36. Shevlin, T. The Future of Tax Research: From an Accounting Professor's Perspective. The Journal of the American Taxation Association 29 (2007): 87-93.
37. Shevlin, T., and Porter, S. The Corporate Tax Comeback in 1987: Some Further Evidence. Journal of the American Taxation Association 14 (1992): 58-79.
38. Smith, C. W., and R. Stulz. The Determinants of Firms' Hedging Policies Journal of Financial and Quantitative Analysis 20 (1985): 391-405.
39. Staiger, D., and J. H. Stock. Instrumental Variables Regression with Weak Instruments. Econometrica 65 (1997): 557-86.
40. Stickney, C., and V. McGee. Effective Corporate Tax Rates. The Effect of Size, Capital Intensity, Leverage, and Other Factors. Journal of Accounting and Public Policy 1 (1982): 125-52.
41. Williams, M., and R. Rao. CEO Stock Options and Equity Risk Incentives. Journal of Business Finance & Accounting 33 (2006): 26-44.
42. Wilson, R. An Examination of Corporate Tax Shelter Participants. The Accounting Review 84 (2009): 969-99.
43. Zimmerman, J. Taxes and Firm Size. Journal of Accounting and Economics 5(1983): 119-49.