Management compensation, monitoring and aggressive corporate tax planning

Research, Preprint English OPEN
Steinhoff, Melanie;
(2015)
  • Publisher: CAWM Münster
  • Subject: corporate tax planning | D21 | H25 | management incentives,hidden action,corporate tax planning | management incentives, hidden action, corporate tax planning | management incentives | hidden action | D82
    • jel: jel:D21 | jel:D82 | jel:H25
      ddc: ddc:330
    acm: ComputingMilieux_GENERAL | ComputingMilieux_LEGALASPECTSOFCOMPUTING

The empirical literature shows that management incentives often reduce corporate tax aggressiveness. Focussing on the riskiness of tax aggressiveness this paper offers one explanation for the observed negative relation. Using an agency framework, I analyze the manager's... View more
  • References (22)
    22 references, page 1 of 3

    [1] Armstrong, C., Blouin, J., Larcker, D., 2012. The incentives for tax planning. Journal of Accounting and Economics 53, 391-411.

    [2] Banker, R., Datar, S., 1989. Sensitivity, precision and linear aggregation of signals for performance evaluation. Journal of Accounting Research 27 (1), 21-39.

    [3] Bebchuck, L., Fried, J., 2003. Executive Compensation as an Agency Problem. Journal of Economic Perspectives 17, 71-92.

    [4] Armstrong, C., Blouin, J., Jagolinzer, A., Larcker, D., 2015. Corporate Governance, Incentives, and Tax Avoidance. Journal of Accounting and Economics (forthcoming ).

    [5] Chen, K., Chu, C., 2005. Internal Control vs. External Manipulation: A Model of Corporate Income Tax Evasion. RAND Journal of Economics 36 (4), 151-164.

    [6] Crocker, K., Slemrod, J., 2005. Corporate Tax Evasion With Agency Costs. Journal of Public Economics 89, 1593-1610.

    [7] Desai, D., Dharmapala, D., 2006. Corporate tax avoidance and high-powered incentives. Journal of Financial Economics 79, 145-179.

    [8] Dyreng, S., Hanlon, M., Meydew, E., 2010. The E¤ects of Executives on Corporate Tax Avoidance. The Accounting Review 85, 1163-1189.

    [9] Ewert, R.; Niemann, R., 2014. A Theory of Tax Avoidance - Managerial Incentives for Tax Planning in a Multi-Task Principal-Agent Model. CESifo Wirking Paper No. 4851.

    [10] Gaertner, F., 2013. CEO After-Tax Compensation Incentives and Corporate Tax Avoidance. Contemporary Accounting Research (forthcoming ).

  • Metrics
Share - Bookmark