Do Publicly Disclosed Tax Reserves Tell Us About Privately Disclosed Tax Shelter Activity?

Journal of Accounting Research

Volumn 51, Issue 3, 2013, Pages 583-629

  Lisowsky, Petro ^a   Robinson, Leslie ^b   Schmidt, Andrew ^c  

^a UNIVERSITY OF ILLINOIS AT URBANA CHAMPAIGN   (United States)

^b DARTMOUTH COLLEGE   (United States)

^c NORTH CAROLINA STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84876194330     PISSN: 00218456     EISSN: 1475679X     Source Type: Journal    
DOI: 10.1111/joar.12003     Document Type: Article

References (52)

1. Armstrong, C.; J. Blouin ; and D. Larcker . "The Incentives for Tax Planning. Journal of Accounting and Economics 53 (2012): 391-411.
2. Balachandran, S., and P. Mohanram . "Is the Decline in the Value Relevance of Accounting Driven by Increased Conservatism? Review of Accounting Studies 16 (2011): 272-301.
3. Balakrishnan, K.; J. Blouin ; and W. Guay . "Does Tax Aggressiveness Reduce Financial Reporting Transparency?" Working paper, University of Pennsylvania, 2011.
4. Basu, S. "The Conservatism Principle and the Asymmetric Timeliness of Earnings. Journal of Accounting and Economics 24 (1997): 3-37.
5. Beaver, W., and E. Engel . "Discretionary Behavior with Respect to Allowances for Loan Losses and the Behavior of Security Prices. Journal of Accounting and Economics 22 (1996): 177-206.
6. Blouin, J.; C. Gleason ; L. Mills ; and S. Sikes . "Pre-empting Disclosure? Firms' Decisions Prior to FIN 48. The Accounting Review 85 (2010): 791-815.
7. Blouin, J., and L. Robinson . "Post-Implementation Review of FIN 48: A Summary of the Academic Literature." Prepared for the Financial Accounting Foundation. Working paper, University of Pennsylvania, 2012.
8. Boynton, C.; P. DeFilippes ; and E. Legel . "A First Look at 2005 Schedule M-3 Corporate Reporting. Tax Notes, Special Report 121 (2008): 563-96.
9. Boynton, C.; P. DeFilippes ; E. Legel ; and T. Reum . "A First Look at 2007 Schedule M-3 Reporting by Large Corporations. Tax Notes 132 (2011): 689-725.
10. Brown, J.; K. Drake ; and M. Martin . "Is Less Really More? The Moderating Effect of Tax Risk on Tax Avoidance." Working paper, Arizona State University, 2010.
11. Burton, H., and S. Karlinsky . "Tax Professionals' Perception of Large and Mid-Size Business Tax Law Complexity." Working paper, University of North Carolina Charlotte 2011.
12. Callen, J.; D. Segal ; and O. K. Hope . "The Pricing of Conservative Accounting and the Measurement of Conservatism at the Firm-Year Level. Review of Accounting Studies 15 (2010): 145-78.
13. Chirelstein, M., and L. Zelenak . "Tax Shelters and the Search for a Silver Bullet. Columbia Law Review 105 (2005): 1939-66.
14. Coder, J. "Con Ed's LILO Appeal Faces Critical Federal Circuit. Tax Notes Today 2012 TNT 217-2 (2012).
15. De Simone, L.; J. Robinson ; and B. Stomberg . "Distilling the Reserve for Uncertain Tax Positions: The Revealing Case of Black Liquor." Working paper, University of Texas at Austin, 2011.
16. Desai, M., and D. Dharmapala . "Corporate Tax Avoidance and High-Powered Incentives. Journal of Financial Economics 79 (2006): 145-79.
17. Desai, M.; I. Dyck ; and L. Zingales . "Theft and Taxes. Journal of Financial Economics 84 (2007): 591-623.
18. Donohoe, M., and G. McGill . "The Effects of Increased Book-Tax Difference Tax Return Disclosures on Firm Valuation and Behavior. Journal of the American Taxation Association 33 (2011): 35-65.
19. Dyreng, S.; M. Hanlon ; and E. Maydew . "Long-Run Corporate Tax Avoidance. The Accounting Review 83 (2008): 61-82.
20. Easton, P. D., and J. Pae . Accounting Conservatism and the Relation Between Returns and Accounting Data. Review of Accounting Studies 9 (2004): 495-521.
21. Feng, M.; J. Gramlich ; and S. Gupta . "Special Purpose Vehicles: Empirical Evidence on Determinants and Earnings Management. The Accounting Review 84 (2009): 1833-76.
22. Financial Accounting Standards Advisory Council (FASAC). Uncertain Tax Positions, Attachment G-1 (September 2004). http://www.fasb.org/project/09_2004uncer-taintax.pdf.
23. Financial Accounting Standards Board (FASB). Financial Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes-An Interpretation of FASB Statement No. 109 . Norwalk, CT (2006).
24. Frank, M. M.; L. Lynch ; and S. Rego . "Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting. The Accounting Review 84 (2009): 467-96.
25. Frischmann, P.; T. Shevlin ; and R. Wilson . "Economic Consequences of Increasing the Conformity in Accounting for Uncertain Tax Benefits. Journal of Accounting and Economics 46 (2008): 261-78.
26. Givoly, D.; C. Hayn ; and A. Natarajan . "Measuring Reporting Conservatism. The Accounting Review 82 (2007): 65-106.
27. Gleason, C., and L. Mills . "Materiality and Contingent Tax Liability Reporting. The Accounting Review 77 (2002): 317-42.
28. Gleason, C., and L. Mills . Do Auditor-Provided Tax Services Improve the Estimate of Tax Reserves Contemporary Accounting Research 28 (2011): 1484-509.
29. Graham, J.; M. Hanlon ; and T. Shevlin . "Inside the Corporate Tax Department: Insights on Corporate Decision Making and Tax Aggressiveness." Working paper, Duke University, 2011.
30. Graham, J., and A. Tucker . "Tax Shelters and Corporate Debt Policy. Journal of Financial Economics 81 (2006): 563-94.
31. Greene, W. Econometric Analysis . New Jersey : Prentice Hall, 2003.
32. Guay, W.; S. Kothari ; and R. Watts . A Market-Based Evaluation of Discretionary Accrual Models. Journal of Accounting Research 34 (1996): 83-105.
33. Gupta, S.; R. Laux ; and D. Lynch . "Do Firms Use Tax Cushion Reversals to Meet Earnings Targets?" Working paper, Michigan State University, 2011.
34. Gupta, S.; L. Mills ; and E. Towery . "Did FIN 48 Arrest the Trend in Multistate Tax Aggressiveness?" Working paper, University of Texas at Austin, 2011.
35. Hanlon, M., and S. Heitzman . "A Review of Tax Research. Journal of Accounting and Economics 50 (2010): 127-78.
36. 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.
37. Koester, A. "Investor Valuation of Tax Avoidance Through Uncertain Tax Positions." Working paper, Georgetown University, 2011.
38. Kothari, S. P.; A. Leone ; and C. Wasley . "Performance Matched Unexplained Accrual Measures. Journal of Accounting and Economics 39 (2005): 745-67.
39. Lisowsky, P. "Seeking Shelter: Empirically Modeling Tax Shelters Using Financial Statement Information. The Accounting Review 85 (2010): 1693-720.
40. McDonald, J., and R. Moffit . "The Uses of Tobit Analysis. Review of Economics and Statistics 62 (1980): 318-21.
41. McNichols, M., and G. P. Wilson . "Evidence of Earnings Management from the Provision for Bad Debts. Journal of Accounting Research 26 (Supplement 1988): 1-31.
42. Mills, L. "Book-Tax Differences and Internal Revenue Service Adjustments. Journal of Accounting Research 36 (1998): 343-56.
43. Mills, L.; L. Robinson ; and R. Sansing . "FIN 48 and Tax Compliance. The Accounting Review 85 (2010): 1721-42.
44. Penman, S., and X. Zhang . "Accounting Conservatism, the Quality of Earnings, and Stock Returns. The Accounting Review 77 (2002): 237-64.
45. Petersen, M. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches. Review of Financial Studies 22 (2009): 435-80.
46. Rego, S., and R. Wilson . "Equity Risk Incentives and Corporate Tax Aggressiveness. Journal of Accounting Research 50 (2012): 775-810.
47. Shakow, D. "Consolidated Edison Turns on the Lights. Tax Notes 126 (2010): 625-30.
48. Shevlin, T. "Commentary: Corporate Tax Shelters and Book-Tax Differences. Tax Law Review 55 (2002): 427-44.
49. U.S. Department of the Treasury (TREASURY). The Problem of Corporate Tax Shelters: Discussion, Analysis and Legislative Proposals, Washington, D.C. (1999).
50. Watts, R. L. "Conservatism in Accounting, Part I: Explanations and Implications. Accounting Horizons 17 (2003a): 207-21.
51. Watts, R. L. "Conservatism in Accounting, Part II: Evidence and Research Opportunities. Accounting Horizons 17 (2003b): 287-301.
52. Wilson, R. "An Examination of Corporate Tax Shelter Participants. The Accounting Review 84 (2009): 969-99.