This paper examines the evolution of the corporate profit base and the relationship between book income and tax income for U.S. corporations over last two decades. The paper demonstrates that this relationship has broken down over the 1990s and has broken down in a manner that is consistent with increased sheltering activity. The paper traces the growing discrepancy between book and tax income ...

This paper investigates the effect of CFO gender on corporate tax aggressiveness. Focusing on firms that experience a male-to-female CFO transition, the paper compares those firms’ degree of tax aggressiveness during the preand posttransition periods. Using the probability of tax sheltering, the predicted unrecognized tax benefits, and the discretionary permanent book-tax differences to measure...

This paper develops and analyzes a model in which tax considerations and financial reporting considerations have countervailing effects on a firm’s investments in internally developed intangible assets. It also proposes and estimates a new measure of tax preferences, which we call the economic effective tax rate. This measure reflects both investments in intangible assets and the use of debt fi...

This paper examines the implications for multinational firms of recent proposals to conform tax and financial reporting (i.e., book-tax conformity). Proponents of book-tax conformity argue that the current dual system in the U.S. allows firms to simultaneously manage their taxable income down while managing their book income upward. By requiring book-tax conformity, they contend that firms will...

Hanlon (2005) and Lev and Nissim (2004) provide rather compelling evidence that book-tax differences, on average, are systematically related to earnings growth, future stock returns, and earnings persistence. Among other implications, these studies suggest that book-tax differences are useful measures in evaluating firm performance. Consistent with these studies, Shevlin (2002) and Hanlon, Lapl...

Today, women are considered as one of the main pillars of corporate decision making, which can contribute to the development and promotion of corporate initiatives and projects within the framework of the development of trust and confidence of shareholders and society. The purpose of this research is to investigate the association between the presence of women on boards of directors and tax avo...

Executive Summary This paper discusses the issues surrounding the proposals to conform financial accounting income and taxable income. The two incomes diverged in the late 1990s, with financial accounting income becoming increasingly greater than taxable income through the year 2000. While the cause of this divergence is not known for certain, many suspect that it is the result of earnings mana...