IRS Attention

Bozanic, Zahn; Hoopes, Jeffrey L.; Thornock, Jacob R.; Williams, Braden

doi:10.2139/ssrn.2529268

Cited by 23 publications

(27 citation statements)

References 38 publications

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“…First, banks might reduce their extent of profit shifting since tax authorities have more information at hand to audit tax-aggressive banks more efficiently. As Bozanic et al (2017) have shown, tax authorities actually make use of tax-related disclosures in financial statements in case they contain incremental information to the tax return data. Second, increased public scrutiny might induce banks to voluntarily pay their "fair share of taxes".…”

Section: Prior Literature and Hypothesesmentioning

confidence: 99%

Increasing tax transparency: investor reactions to the country-by-country reporting requirement for EU financial institutions

Dutt

Ludwig

Nicolay

et al. 2019

Int Tax Public Finance

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We employ an event study methodology to investigate the stock price reaction around the day of the political decision to include a country-by-country reporting obligation for EU financial institutions. We do not find significant abnormal returns for the banks affected. Sample splits according to the effective tax rate and the degree of B2C orientation do not reveal a more pronounced negative investor response for banks engaging more strongly in tax avoidance or being potentially more concerned about reputational risks, respectively. We conclude that the implementation of a CbCR requirement for EU financial institutions did not trigger a noticeable investor response. Contrary prior findings regarding other public tax disclosure obligations might be driven by the distinct motivation of the rules and the way the information is presented. We contend that capital market reactions to an upcoming increase in tax transparency are not generalizable to other industries and settings, but that consideration must be given to the context and the exact design of the rule.

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Section: Prior Literature and Hypothesesmentioning

confidence: 99%

Increasing tax transparency: investor reactions to the country-by-country reporting requirement for EU financial institutions

Dutt

Ludwig

Nicolay

et al. 2019

Int Tax Public Finance

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“…Thus, only with CurrETR and CashETR does it become apparent if companies undertake efforts to lower the current tax expense and cash taxes paid by deferring the latter to subsequent periods. Disclosing low current tax expenses and paying low taxes could attract the tax authorities' attention (see Bozanic et al 2014). Tax certified individual auditors seem to be associated with a reduced risk of such attention.…”

Section: Plainmentioning

confidence: 99%

Tax certified individual auditors and effective tax rates

Frey

2017

Bus Res

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This study examines how the appointment of tax certified individual auditors is associated with reported effective tax rates of corporate clients. The study uses a unique German institutional setting which makes it possible to track individual auditors that are also certified tax consultants and sign the audit opinion.Empirical results indicate that tax certified individual engagement partners are associated with higher effective tax rates. Further tests reveal that this association also exists for individual parent company financial statements and that it is stronger when tax confirmation services are provided to the audit client. My findings enhance the understanding of the role of individual auditors.Keywords Tax certified individual auditor Á Effective tax rate Á Knowledge spillover JEL Classification M41 Á M42 Á H26

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“…Our analysis offers insight into the types of institutional users that demand corporate earnings conference calls. In this way, our work complements several recent pieces of research (Drake et al 2014, Drake et al 2015, Bozanic et al 2014 that explain the demand for mandatory SEC filings by examining the EDGAR database. 21 In contrast to these examinations that focus on the demand for mandatory disclosure filings by largely individual investors, we explore institutional demand for earnings conference calls, a form of voluntary firm-initiated disclosure, and find that much of the demand is from non-buy-side investors.…”

Section: Conclusion and Future Opportunitiesmentioning

confidence: 65%

Who Consumes Firm Disclosures? Evidence from Earnings Conference Calls

Heinrichs

Park

Soltes

2018

The Accounting Review

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Using a set of proprietary records, we examine who consumes quarterly earnings conference calls and under which circumstances the calls are consumed. While there is significant interest in calls by institutional investors and sell-side analysts, we find that investors who do not hold a position in the firm are a leading consumer. We show that buy-side non-holders who consume calls are more likely to hold positions in competitors and to purchase the stock in the future. In addition, many investors who hold large positions only consume calls periodically. We also document a benefit of consuming calls by finding that the consumption of calls is associated with more informed trading decisions. Overall, our investigation illuminates the actual consumption of conference calls by different consumers and the potential benefits of consuming additional firm disclosures.

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IRS Attention

Cited by 23 publications

References 38 publications

Increasing tax transparency: investor reactions to the country-by-country reporting requirement for EU financial institutions

Increasing tax transparency: investor reactions to the country-by-country reporting requirement for EU financial institutions

Tax certified individual auditors and effective tax rates

Who Consumes Firm Disclosures? Evidence from Earnings Conference Calls

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