Abstract

http://ssrn.com/abstract=1416422
 
 

References (68)



 
 

Citations (30)



 


 



The Incentives for Tax Planning


Chris Armstrong


University of Pennsylvania - Accounting Department

Jennifer L. Blouin


University of Pennsylvania - Accounting Department

David F. Larcker


Stanford University - Graduate School of Business

March 8, 2011

Journal of Accounting and Economics, Volume 53, Issues 1–2, (Feb–April 2012): 391-411.
Rock Center for Corporate Governance at Stanford University Working Paper No. 56
Stanford Graduate School of Business Research Paper No. 2032

Abstract:     
We use a proprietary data set with detailed executive compensation information to examine the relationship between the incentives of the tax director and GAAP and cash effective tax rates, the book-tax gap, and measures of tax aggressiveness. We find that the incentive compensation of the tax director exhibits a strong negative relationship with the GAAP effective tax rate, but little relationship with the other tax attributes. We interpret these results as indicating that tax directors are provided with incentives to reduce the level of tax expense reported in the financial statements.

Number of Pages in PDF File: 53

Keywords: tax director incentives, effective tax rate, book-tax difference

JEL Classification: H25, J33, M41, M52

Accepted Paper Series


Download This Paper

Date posted: June 10, 2009 ; Last revised: November 6, 2012

Suggested Citation

Armstrong, Chris and Blouin, Jennifer L. and Larcker, David F., The Incentives for Tax Planning (March 8, 2011). Rock Center for Corporate Governance at Stanford University Working Paper No. 56; Journal of Accounting and Economics, Volume 53, Issues 1–2, (Feb–April 2012): 391-411. ; Rock Center for Corporate Governance at Stanford University Working Paper No. 56; Stanford Graduate School of Business Research Paper No. 2032. Available at SSRN: http://ssrn.com/abstract=1416422

Contact Information

Chris S. Armstrong
University of Pennsylvania - Accounting Department ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Jennifer L. Blouin
University of Pennsylvania - Accounting Department ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States
215-898-1266 (Phone)

David F. Larcker (Contact Author)
Stanford University - Graduate School of Business ( email )
Graduate School of Business
518 Memorial Way
Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

Feedback to SSRN


Paper statistics
Abstract Views: 7,736
Downloads: 1,975
Download Rank: 3,518
References:  68
Citations:  30

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.562 seconds