Tax Advisors and Tax Aggressiveness: A Bargaining Model

2021 ◽  
pp. 0148558X2110516
Author(s):  
Ramy Elitzur ◽  
Varda (Lewinstein) Yaari
Keyword(s):  
Optimal Number ◽  
Bargaining Game ◽  
Bargaining Model ◽  
Tax Aggressiveness

We study the bargaining game between a tax agency and a tax advisor-taxpayer team. Specifically, we focus on the factors that motivate tax aggressiveness, and the role of tax advisors in tax aggressiveness. We begin by characterizing the conditions under which tax advisors would give aggressive advice to their clients. Next, we analyze the optimal number of bargaining rounds for the tax agency. Third, we study the counteroffers that the tax agency makes in each round of the bargaining game. In addition, we investigate the conditions under which a high-tax taxpayer type would hire a reputable tax adviser. Last, we analyze when would the taxpayer accept or reject the tax advisor’s recommendation.

scholarly journals The Role of Gender Diversity on Tax Aggressiveness and Corporate Social Responsibility: Evidence from Italian Listed Companies

2020 ◽  
Vol 12 (5) ◽  
pp. 2007 ◽  
Author(s):  
Andrea Vacca ◽  
Antonio Iazzi ◽  
Demetris Vrontis ◽  
Monica Fait
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Gender Diversity ◽  
Global Reporting Initiative ◽  
Tax Aggressiveness ◽  
Csr Reporting ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship

The paper aims to examine the moderating role of gender diversity within a corporate board on the relationship between tax aggressiveness and a firm’s corporate social responsibility (CSR) approach. This analysis was conducted using a set of indicators of financial statements of 168 Italian listed firms between 2011 and 2018. In addition, the sustainability reports of the same companies were observed. To perform the analysis a logit regression model is used. This paper shows different empirical results. First, this study notes that there is not a direct relationship between tax aggressiveness and CSR reporting. Second, gender diversity in a board of directors increases the orientation of companies to CSR disclosure, but does not have an impact on the relationship between tax aggressiveness and CSR disclosure. Instead, CEO gender has a positive influence on the relationship between corporate tax planning and CSR reporting in accordance with Global Reporting Initiative (GRI) standards. This study emphasizes the key role of gender diversity in the growth of the CSR approach and the reputation of companies. Therefore, governments and policymakers of major countries should promote gender diversity in corporate decision-making bodies, which contributes to achieving the Sustainable Development Goals (SDGs).

The Role of Auditors, Non-Auditors, and Internal Tax Departments in Corporate Tax Aggressiveness

2015 ◽  
Vol 91 (1) ◽  
pp. 179-205 ◽  
Author(s):  
Kenneth J. Klassen ◽  
Petro Lisowsky ◽  
Devan Mescall
Keyword(s):  
Tax Compliance ◽  
Tax Planning ◽  
Internal Revenue Service ◽  
Corporate Tax ◽  
Tax Aggressiveness ◽  
Big 4 ◽  
Confidential Data ◽  
Tax Preparer ◽  
Tax Returns

ABSTRACT Using confidential data from the Internal Revenue Service on who signs a corporation's tax return, we investigate whether the party primarily responsible for the tax compliance function of the firm—the auditor, an external non-auditor, or the internal tax department—is related to the corporation's tax aggressiveness. We report three key findings: (1) firms preparing their own tax returns or hiring a non-auditor claim more aggressive tax positions than firms using their auditor as the tax preparer; (2) auditor-provided tax services are related to tax aggressiveness even after considering tax preparer identity, which supports and extends prior research using tax fees as a proxy for tax planning; and (3) Big 4 tax preparers, in particular, are linked to less tax aggressiveness when they are the auditor than when they are not the auditor. Our findings help policymakers and researchers better understand an important feature of tax compliance intermediaries; particularly, how the dual role via audits is related to observable corporate tax outcomes.

scholarly journals Exploiting common resources with capital-intensive technologies: the role of external forces

2008 ◽  
Vol 13 (5) ◽  
pp. 565-589 ◽  
Author(s):  
STEFANIE ENGEL ◽  
RAMÓN LÓPEZ
Keyword(s):  
Local Communities ◽  
Third Parties ◽  
Third Party ◽  
Bargaining Model ◽  
Bargaining Process ◽  
Outside Options ◽  
Model Distribution ◽  
External Forces ◽  
Capital Intensive

ABSTRACTThis paper focuses on the interactions between local communities having at least some degree of informal claims over natural resources and firms interested in commercially exploiting such resources, explicitly allowing for interventions by third parties interested in community welfare and environmental outcomes. Integrating conflict and bargaining theories, we develop a bargaining model with endogenous inside and outside options, in which the feasibility and outcomes of a potential bargaining game depend on the unraveling of a conflict stage and vice versa. The model implies that, contrary to the conventional bargaining model, distribution and efficiency cease to be separable. We show that certain third-party interventions in the bargaining process may have unexpected and counterproductive effects.

scholarly journals The Role of Related Party Transaction and Earning Management in Reducing Tax Aggressiveness

2019 ◽  
Vol 4 (3) ◽  
pp. 134-145
Author(s):  
Masna Ellyani ◽  
Ataina Hudayati
Keyword(s):  
Structural Equation ◽  
Stock Exchange ◽  
Equation Model ◽  
Partial Least Square ◽  
Least Square ◽  
Earning Management ◽  
Positive Role ◽  
Tax Aggressiveness ◽  
The Relationship

This study aimed to examine the influence of related party transactions (RPT) on tax aggressiveness by using earning management as an intervening variable. This study was performed based on the perception that RPT is a positive practice and it is predicted to decrease tax aggressiveness. Besides aiming to find empirical evidence of positive role of RPT in the field of taxation, this study also aimed to test the positive role of earning management in reducing tax aggressiveness. The population of this study was 47 of manufacturing company registered on the Indonesia Stock Exchange for the period of 2014-2016 having transactions with related party (RPT). The analysis method of this study was structural equation model using Partial Least Square (PLS) software. This findings supported the hypothesis that RPT and earning management negatively affects tax aggressiveness. The results of the study also showed that earning management mediate the relationship between RPT and tax aggressiveness.Keywords: RPT, tax aggressiveness, earning management 

scholarly journals The moderating role of board gender diversity between power-based corporate governance and tax aggressiveness

2021 ◽  
Vol 10 (2) ◽  
pp. 104-147
Author(s):  
Farzan Yahya ◽  
Abdul Manan ◽  
Muhammad Wasim Jan Khan ◽  
Muhammad Sadiq Hashmi
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Tax Avoidance ◽  
Ceo Power ◽  
Tax Aggressiveness ◽  
Concentrated Ownership ◽  
Board Gender Diversity ◽  
The Relationship ◽  
Moderating Role

The purpose of this study is to explore the moderating effect of board gender diversity on the relationship between power-based corporate governance (CEO power and concentrated ownership) and tax aggressiveness. The sample of this study is based on 2,071 firm-year observations over the period 2010 to 2018. We employed two-step GMM estimations to account for endogeneity and other statistical biases. The results show that CEO power increases the likelihood of tax aggressiveness while the link between the large controlling shareholders and tax-avoidance activities is not statistically significant. Lastly, the findings suggest that powerful CEOs manipulate female directors to promote tax aggressiveness behavior. 

scholarly journals General Counsel Prominence and Corporate Tax Policy

2015 ◽  
Vol 38 (1) ◽  
pp. 39-56 ◽  
Author(s):  
John L. Abernathy ◽  
Thomas R. Kubick ◽  
Adi Masli
Keyword(s):  
Tax Policy ◽  
Top Management Team ◽  
Management Team ◽  
Data Availability ◽  
Top Management ◽  
General Counsel ◽  
Corporate Tax ◽  
Firm Level ◽  
Tax Aggressiveness

ABSTRACT Prior research provides evidence that individual executives have a significant effect on firm-level tax policy. Further research has shown that having a corporate general counsel (GC) in a firm's top management team (top five highest-paid executives) significantly affects a firm's accounting and disclosure practices. In this paper, we examine the role of the GC in corporate tax policy. Specifically, we use the ascension of the corporate GC to top management as the identifying event in which the role and influence of the corporate GC becomes more salient. We find strong evidence that GC ascension to top management is associated with an increase in tax aggressiveness, as evidenced by greater book-tax differences and a higher likelihood of engaging in tax shelter activities. Data Availability: Data are obtained from public sources identified in the paper.

scholarly journals More dangerous than dyads: how a third party enables rationalist explanations for war

2017 ◽  
Vol 29 (3) ◽  
pp. 353-381 ◽  
Author(s):  
Max Gallop
Keyword(s):  
Incomplete Information ◽  
Bargaining Game ◽  
Third Party ◽  
Dyadic Analysis ◽  
Bargaining Model ◽  
Commitment Problems ◽  
Bargaining Model Of War ◽  
State Preferences

For the bargaining model of war, in the absence of incomplete information and commitment problems, war is irrational. But this finding rests on a simple and rarely discussed assumption, that bargaining is between exactly two participants. When we relax this assumption, in a three-player bargaining game, war is an equilibrium. Thus, a key finding of the bargaining model, that there is always an agreement that all states prefer war, is an artifact of dyadic analysis. By removing this limitation, we can find new factors that affect the risk of war: the number of actors, divergence in state preferences, alliance dynamics, and the issue being bargained over.

A pilot study investigating the rapid estimation of intact dry density of chalk using low impact energy hardness measurements taken with an Equotip Leeb hardness tester

2021 ◽  
pp. qjegh2021-101
Author(s):  
Andrew Thrower ◽  
John Barlow ◽  
Roger Moore ◽  
Tim Cane
Keyword(s):  
Sheet Steel ◽  
Surface Hardness ◽  
Optimal Number ◽  
Dry Density ◽  
Hardness Tester ◽  
Environmental Setting ◽  
Margin Of Error ◽  
Classification Property ◽  
Leeb Hardness

Intact dry density (IDD) is a key parameter for characterising the rock mass behaviour of chalk and is often the main classification property reported for engineering design. The role of IDD in coastal chalk settings has been discussed in literature as an important rock control for coastal cliff recession behaviour. This study demonstrates a tool that can reliably estimate the IDD of chalk samples. Originally developed for testing sheet steel materials, the Equotip has been shown to be adaptable for geological applications and the results of this study show that the Equotip can be used to derive a surface hardness value of dry chalk samples that has a positive correlation with IDD. Furthermore, the results show that the device is sensitive to the anisotropy of chalk and that testing undertaken in the diametral orientation give more accurate correlations. The results of this study also show that the Equotip is sensitive to environmental setting and the effects of weathering, giving a separate correlation for samples collected along the Sussex coastline to those obtained inland. A statistical assessment of the results shows that a characteristic hardness within an acceptable margin of error can be achieved from an optimal number of single impacts.

5. The Causes of War and the Conditions of Peace

2018 ◽  
pp. 72-88
Author(s):  
John Garnett ◽  
John Baylis
Keyword(s):  
Human Nature ◽  
Civil Wars ◽  
Bargaining Model ◽  
Ethnic Conflicts ◽  
Causes Of War ◽  
Bargaining Model Of War ◽  
Just Peace ◽  
Inter State

This chapter examines theories that explain the causes of war. It considers ideas advanced by political scientists, sociologists, biologists and philosophers, showing that different explanations of war give rise to different requirements or conditions for peace. After highlighting the difficulties in studying war, the chapter discusses human nature explanations of war, citing such factors as frustration, misperception, misunderstanding, miscalculation, and errors of judgement as well as the role of human collectives including factions, tribes, nations and states. It then describes the bargaining model of war before turning to inter-state wars, intra-state conflicts, and ethnic conflicts. It also explores the debate over whether ‘greed’ or ‘grievance’ are the main causes of civil wars. The chapter concludes that identifying a single cause appropriate to all wars is an exercise in futility and that a worldwide ‘just’ peace is unattainable.

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