Internal financing, managerial compensation and multiple tasks

2020 ◽  
Vol 16 (4) ◽  
pp. 501-527
Author(s):  
Sandro Brusco ◽  
Fausto Panunzi
Author(s):  
Alan G. Weinstein ◽  
V. Srinivasan

2001 ◽  
Vol 76 (4) ◽  
pp. 655-674 ◽  
Author(s):  
Bin Ke

This study empirically investigates how taxes affect managerial compensation for a sample of privately held insurers whose managers own a large percentage of the firm's stock (I refer to these as management-owned insurers) during 1989–1996. Shareholder/managers receive two types of income from the firm they own: compensation income as employees, and investment income as shareholders. Although compensation income is taxable to employees and deductible by employers, investment income is subject to double taxation. Thus, the mix of the two is an important tax-planning decision for management-owned insurers. I predict and find that as individual tax rates increased relative to corporate tax rates from 1989–1992 to 1993–1996, shareholder/managers paid themselves less tax-deductible compensation relative to a control sample of nonmanagement-owned insurers (i.e., privately held insurers with no managerial ownership). The study's results expand our understanding of management-owned, privately held firms' tax-planning strategies, and have implications for the efficiency of the federal income tax system.


2021 ◽  
pp. 174702182110087
Author(s):  
Lauren Aulet ◽  
Sami R Yousif ◽  
Stella Lourenco

Multiple tasks have been used to demonstrate the relation between numbers and space. The classic interpretation of these directional spatial-numerical associations (d-SNAs) is that they are the product of a mental number line (MNL), in which numerical magnitude is intrinsically associated with spatial position. The alternative account is that d-SNAs reflect task demands, such as explicit numerical judgments and/or categorical responses. In the novel ‘Where was The Number?’ task, no explicit numerical judgments were made. Participants were simply required to reproduce the location of a numeral within a rectangular space. Using a between-subject design, we found that numbers, but not letters, biased participants’ responses along the horizontal dimension, such that larger numbers were placed more rightward than smaller numbers, even when participants completed a concurrent verbal working memory task. These findings are consistent with the MNL account, such that numbers specifically are inherently left-to-right oriented in Western participants.


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