An Examination of the Impact of Tax Avoidance on the Readability of Tax Footnotes

2017 ◽  
Vol 40 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Kerry K. Inger ◽  
Michele D. Meckfessel ◽  
Mi (Jamie) Zhou ◽  
Weiguo (Patrick) Fan
Keyword(s):  
Tax Avoidance ◽  
Primary Source ◽  
Positive Association ◽  
Negative Association ◽  
Trade Off ◽  
Tax Returns ◽  
Tax Savings ◽  
The Impact ◽  
Source Of Information

ABSTRACT Due to the proprietary nature of tax returns, the tax footnote is the primary source of information for stakeholders about a firm's tax position. However, studies suggest the tax authority acquires information in tax disclosures, creating a trade-off for managers on whether to provide decision-useful information for stakeholders or conceal information from the tax authority. We investigate this trade-off by examining the readability of tax footnotes. We find a positive association between tax avoidance and tax footnote readability for firms with tax avoidance below the industry-year median, consistent with managers highlighting good performance in the form of tax savings with straightforward disclosures. In contrast, we find a negative association between tax avoidance and tax footnote readability for firms with levels of tax avoidance above the industry-year median, consistent with managers concealing tax avoidance from the tax authority. Reinforcing these results, we find that investors place a premium (discount) on tax avoidance when the tax footnote is straightforward in firms with tax avoidance below (above) the industry-year median.

Corporate real estate, capital structure and value creation

2017 ◽  
Vol 10 (3) ◽  
pp. 384-404 ◽  
Author(s):  
Maria-Teresa Bosch-Badia ◽  
Joan Montllor-Serrats ◽  
Anna-Maria Panosa-Gubau ◽  
Maria-Antonia Tarrazon-Rodon
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Structure Theory ◽  
Trade Off ◽  
Content Type ◽  
Default Option ◽  
Bankruptcy Costs ◽  
Corporate Real Estate ◽  
Tax Savings ◽  
The Impact

Purpose This paper aims to analyse the corporate rent-vs-buy decision on real estate through the trade-off theory and default option in the framework of a corporation that aims to optimise its capital structure. Design/methodology/approach The methodological core of this paper comprises the trade-off theory that approaches the optimal capital structure by counterbalancing debt tax savings with bankruptcy costs. Impacts on the default option and the default barrier are made explicit. The paper also explores the practical applicability of the renting scenarios in the European context by examining the regimes of real estate investment trusts in different countries from the demand-side of commercial renting. Findings Analytical relationships with tax savings, bankruptcy costs, default option and default barrier are identified for the renting-vs-buying real estate decisions. Research limitations/implications The theoretical model assumes simplifications, such as constant debt, to make it operational. The paper centres exclusively on the trade-off capital structure theory. Practical implications This paper is an analysis of corporate real estate decisions together with capital structure. Applications are not only quantitative but also conceptual and strategic. Originality/value Identifying the main variables that govern the impact of corporate real estate decisions on capital structure and interweaving different approaches generates a conceptual framework that enlightens strategic thinking in this field.

scholarly journals The Impact of Tax Administration on Revenue Generation in Gombe State, Nigeria

2018 ◽  
Vol 5 (8) ◽  
pp. 86
Author(s):  
Emmanuel Stephen N
Keyword(s):  
Tax Evasion ◽  
Pearson Correlation ◽  
Rank Correlation ◽  
Tax Avoidance ◽  
Primary Source ◽  
The State ◽  
The Body ◽  
Tax Administration ◽  
Revenue Generation ◽  
The Impact

Taxes<em> have been the bedrock of revenue generation to any government. The administration of tax is very important to any government as it is the body responsible for implementing and governing the tax laws and other tax related to assessment, collection and remittance of tax. This study is aimed at ascertaining the effect of tax administration on revenue generation in Gombe state. The study uses survey research design. The primary source of data collection was adopted, which analysed using descriptive statistics was made up of frequencies and simple percentages. Cronbach's Alpha diagnose was carried out to seek for reliability of the questions contained in the questionnaire Three Hypotheses were presented in this research and were tested using Spearman’s Rank correlation, Pearson correlation and linear regression. Research findings indicated that Tax Administration in the state is not efficient and effective. The study revealed further that revenue generated in the state is low to meet its objectives due to low level of enlightenment of tax payers and incidents of tax evasion and tax avoidance. To this end, the study recommends, among others, that authorities should embark on more enlightenment campaign of citizens on the significance of paying Personal Income Tax, the quality and efficiency of tax workers should be improved so that more effective administration will be achieved and automation of the system.</em>

scholarly journals Media Use and Environmental Public Service Satisfaction—An Empirical Analysis Based on China

2019 ◽  
Vol 11 (14) ◽  
pp. 3873
Author(s):  
Shujia Hu ◽  
Runxi Zeng ◽  
Chengzhi Yi
Keyword(s):  
New Media ◽  
Public Service ◽  
Media Use ◽  
General Social Survey ◽  
Primary Source ◽  
Mediating Effect ◽  
Service Satisfaction ◽  
Traditional Media ◽  
The Impact ◽  
Source Of Information

Previous research has produced conflicting findings on the relationship between media use and environmental public service satisfaction. Using survey data from the China General Social Survey 2015 (hereafter referred to as CGSS2015), this study examined the impact of media use on environmental public service satisfaction. The findings showed that traditional media use was positively associated and new media use was negatively associated with environmental public service satisfaction. Individuals who used new media as their primary source of information were less satisfied with environmental public services than individuals whose primary source of information was traditional media. This study confirmed that authoritative value propositions and government trust have a significant mediating effect between traditional media use and environmental public service satisfaction, and government trust has a significant mediating effect between individuals’ main information sources and their environmental public service satisfaction.

scholarly journals Smoking Prevalence and COVID-19 in Europe

2020 ◽  
Vol 22 (9) ◽  
pp. 1646-1649 ◽  
Author(s):  
Panagiotis Tsigaris ◽  
Jaime A Teixeira da Silva
Keyword(s):  
Economic Activity ◽  
Ecological Study ◽  
Smoking Prevalence ◽  
Strong Association ◽  
Positive Association ◽  
Population Level ◽  
Negative Association ◽  
Confounding Factors ◽  
Policy Enactment ◽  
The Impact

Abstract Introduction This ecological study investigates the association between smoking prevalence and COVID-19 occurrence and mortality in 38 European nations as of May 30, 2020. Methods Data were collected from Our World in Data. Regression analysis was conducted to adjust for potential confounding factors such as economic activity (gross domestic product), the rate of COVID-19 testing, and the stringency of COVID-19 control policies. Results There was a statistically significant negative association between smoking prevalence and the prevalence of COVID-19 across the 38 European nations after controlling for confounding factors (p = 0.001). A strong association was found between the prevalence of COVID-19 per million people and economic activity (p = 0.002) and the rate of COVID-19 testing (p = 0.0006). Nations with stricter policy enactment showed fewer COVID-19 cases per million people, but the association was not significant (p = 0.122). Delaying policy enactment was associated with a greater prevalence of COVID-19 (p = 0.0535). Evidence of a direct association between smoking prevalence and COVID-19 mortality was not found (p = 0.626). There was a strong positive association between COVID-19 mortality rate and the prevalence of COVID-19 cases (p &lt; 0.0001) as well as the proportion of the population over 65 years of age (p = 0.0034) and a negative association with the rate of COVID-19 testing (p = 0.0023). Conclusions We found a negative association between smoking prevalence and COVID-19 occurrence at the population level in 38 European countries. This association may not imply a true or causal relationship, and smoking is not advocated as a prevention or treatment of COVID-19. Implications Given the evidence of this ecological study, and of several other studies that found an underrepresentation of smoking prevalence in hospitalized cases, it may be worth examining, in laboratory experiments and controlled human trials, if nicotine offers any protection against COVID-19. Most importantly, to date, no study, including this one, supports the view that smoking acts as a treatment intervention or prophylaxis to reduce the impact or ameliorate the negative health impacts of COVID-19.

The Effect of Hedge Fund Activism on Corporate Tax Avoidance

2012 ◽  
Vol 87 (5) ◽  
pp. 1493-1526 ◽  
Author(s):  
C. S. Agnes Cheng ◽  
Henry He Huang ◽  
Yinghua Li ◽  
Jason Stanfield
Keyword(s):  
Hedge Fund ◽  
Tax Avoidance ◽  
Securities And Exchange Commission ◽  
Data Availability ◽  
Corporate Tax ◽  
Track Record ◽  
Hedge Fund Activism ◽  
Tax Savings ◽  
Tax Changes ◽  
The Impact

ABSTRACT This paper examines the impact of hedge fund activism on corporate tax avoidance. We find that relative to matched control firms, businesses targeted by hedge fund activists exhibit lower tax avoidance levels prior to hedge fund intervention, but experience increases in tax avoidance after the intervention. Moreover, findings suggest that the increase in tax avoidance is greater when activists have a successful track record of implementing tax changes and possess tax interest or knowledge as indicated by their Securities and Exchange Commission (SEC) 13D filings. We also find that these greater tax savings do not appear to result from an increased use of high-risk and potentially illegal tax strategies, such as sheltering. Taken together, the results suggest that shareholder monitoring of firms, in the form of hedge fund activism, improves tax efficiency. JEL Classifications: G32; G34; H26. Data Availability: Data are available from sources identified in the text.

scholarly journals Gender Inequality in Education and Household Poverty in Pakistan: A Case of Multan District

2018 ◽  
Vol 4 (1) ◽  
pp. 115-126 ◽  
Author(s):  
Saeedur Rahman ◽  
Imran Sharif Chaudhry ◽  
Fatima Farooq
Keyword(s):  
Gender Inequality ◽  
Field Survey ◽  
Household Head ◽  
Primary Source ◽  
Positive Association ◽  
Number Of Children ◽  
Household Poverty ◽  
Inequality In Education ◽  
The Impact ◽  
Formal And Informal Sectors

Present study is intended to explore the impact of gender inequality in education on poverty by employing logistic regression on primary source of data collected through a field survey of Multan district. The study concluded that gender inequality in education has adverse impact on household poverty. The probability of household poverty falls with the increase in female-male primary, secondary and tertiary enrolment. The improvement in female-male literacy ratio also rejects probability of a household being poor. Household size and number of children less than five years age have positive association with probability of poverty while the variables, qualification of household head, age of household, professional or technical skills of household head and ownership of house are negatively associated with household poverty. The study suggested that eliminating gender inequality in education in all level may be helpful in empowering women, creating productive employment opportunities in both formal and informal sectors and alleviating poverty.

The impact of ectoparasitism on thermoregulation in Yarrow’s Spiny Lizards (Sceloporus jarrovii)

2019 ◽  
Vol 97 (11) ◽  
pp. 1004-1012 ◽  
Author(s):  
N. Johnson ◽  
A.H. Lymburner ◽  
G. Blouin-Demers
Keyword(s):  
Body Temperature ◽  
Immune Responses ◽  
Positive Association ◽  
Elevational Gradient ◽  
High Elevation ◽  
Negative Association ◽  
The Mean ◽  
The Impact ◽  
Ectoparasite Load

Parasites are ubiquitous and can have large impacts on the fitness of their hosts. The effects of ectoparasites on physiology, behaviour, and immune function suggest that they could be part of the factors which impact thermoregulation. We tested the hypothesis that ectoparasites impact thermoregulation in Yarrow’s Spiny Lizards (Sceloporus jarrovii Cope in Yarrow, 1875) living along an elevational gradient. We predicted a positive association between ectoparasite load and body temperature (Tb), and a negative association between ectoparasite load and effectiveness of thermoregulation (de – db index). We also predicted that the impacts of ectoparasites would be greatest at high elevation where thermal quality of the environment is low because the costs of thermoregulation increase with elevation and these costs can impact thermal immune responses. We found a significant association between the number of chiggers (Trombiculoidea) harboured by lizards and Tb that depended on elevation, but no association between ectoparasite load and de – db index. The mean chigger infection rate was associated with a ΔTb of +0.18 °C at low elevation (consistent with fever) and of –1.07 °C at high elevation (consistent with hypothermia). These findings suggest that parasitism by chiggers impacts lizard Tb in a way that depends on environmental thermal quality.

scholarly journals Relative Valuation of Alternative Methods of Tax Avoidance

2013 ◽  
Vol 36 (1) ◽  
pp. 27-55 ◽  
Author(s):  
Kerry K. Inger
Keyword(s):  
Firm Value ◽  
Tax Avoidance ◽  
Stock Option ◽  
Alternative Methods ◽  
Foreign Earnings ◽  
Tax Reduction ◽  
Accelerated Depreciation ◽  
Tax Savings ◽  
The Impact ◽  
Relative Valuation

ABSTRACT This paper examines the relative valuation of alternative methods of tax avoidance. Prior studies find that firm value is positively associated with overall tax avoidance; I provide evidence that investors distinguish between methods of tax reduction in their valuation of tax avoidance. My analyses suggest that the impact of tax avoidance on firm value varies with tax risk, permanence of tax savings, tax planning costs, implicit taxes, and contrasts in disclosures of tax reduction in the financial statements. Tax avoidance resulting from stock option deductions is positively associated with firm value, accelerated depreciation is not associated with firm value, and deferral of residual U.S. tax on foreign earnings is negatively associated with firm value. The discount on tax avoidance generated by residual tax deferral is limited to firms with a presence in a tax haven and to tax avoidance revealed to investors through disclosure of the estimated residual tax.

scholarly journals Online Consumer Inspection on using E-shopping Service of E-commerce

2019 ◽  
Vol 8 (2S11) ◽  
pp. 438-442
Keyword(s):  
Primary Source ◽  
Product Reviews ◽  
Product Review ◽  
Consumer Reviews ◽  
Goods And Services ◽  
Review Helpfulness ◽  
On Line ◽  
Online Consumer ◽  
The Impact ◽  
Source Of Information

The Internet has become the primary source of information for a large number of consumers and it enables consumers to share their opinions and experiences concerning goods and services. Online consumer reviews provide information and recommendations for prospective buyers and are useful for decision-making on purchases. The purpose of this study is to assess the impact of on-line consumer reviews on a decision of using e-commerce services. In this study, we tend to conduct a laboratory experiment to analyze product review helpfulness likewise as its corresponding antecedents from the product review feature perspective (i.e., source- and contentbased review features). Findings from the study are threefold. First, the results of the information analysis support the theoretical conceptualization of product review helpfulness as a formative construct. Second, the results support the notion that the source- and content-based review options have direct impact on product review helpfulness. Customers perceive customerwritten product reviews as additional useful than those written by experts; they also perceive a concrete review as additional helpful than an abstract review. Third, we discover an interaction effect of the source- and content-based options of product reviews on review helpfulness. A customer-written product review with a low level of content abstractness yields the highest perceived review helpfulness

scholarly journals Empowering Women Through Micro-Financing/ Micro- Credit Loans: A Survey Based Study In Balochistan

2017 ◽  
Vol 5 (1) ◽  
pp. 33-44
Author(s):  
Mohammad Alam Tareen ◽  
Syed Hussain Shah ◽  
Mirwais Kasi
Keyword(s):  
Primary Source ◽  
Positive Association ◽  
Women's Empowerment ◽  
Civil Society Organizations ◽  
Women’S Empowerment ◽  
Research Approach ◽  
Significant Positive Association ◽  
Household Level ◽  
The Impact ◽  
Micro Credit

Women empowerment has been considered as a major challenge to meet the prime objective of economic development in most underdeveloped countries of the world. Various initiatives have been taken at both policy and program levels by both government and civil society organizations to improve the status of women. In the recent past, microcredit schemes have been the dominant tool to improve women; socioeconomic status. This study, therefore, aims to examine the impact of microcredit on women’s empowerment. Data is collected through Primary source using questionnaire survey research approach. A sample of hundred and fifty female respondents was taken from Quetta city involved in home made goods. Cross tabulation analysis was used to show whether there is a difference in opinion responses and chi-square test analysis was applied to examine the association between microcredit and women’s empowerment as measured by decision-making at the household level. The results of this study found that the microcredit program has a significant positive association with women’s empowerment. The study further shows that microcredit improves women’s access to household level assets. Thus, this paper concludes that empowered women through micro-credit scheme are successful in attaining employment, improvement in social status, owning of assets and contribute to the economy.

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