... in the text. Editor’s note: Accepted by Cristi A. Gleason, under the Senior Editorship of W. Robert Knechel. 17 07 2020 31 01 2023 23 02 2023 2023 tax avoidance undersheltering nontax costs FIN 48 structural estimation Tax avoidance is an important factor...

... innovation. We employ a novel setting, the issuance of Financial Interpretation No. 48 (FIN 48), which changed the financial reporting for some important, yet uncertain, tax incentives to innovate. For firms most affected by the standard change, we find evidence of reduced investment in innovation, reduced...

... C. Editor's note: Accepted by Oliver Zhen Li, under the Senior Editorship of Mark L. DeFond. tax avoidance uncertainty FIN 48 UTB reserve We investigate whether tax avoidance becomes more uncertain as the rate of tax avoidance increases. In other words, do firms utilize...

...Leslie A. Robinson; Bridget Stomberg; Erin M. Towery ABSTRACT Our study examines how the uniform rules of FIN 48, which governs accounting for income tax uncertainty, affect the relevance of income tax accounting. By requiring all firms to follow the same recognition and measurement process...

... the support of the PricewaterhouseCoopers Faculty Fellowship at the University of Illinois at Urbana–Champaign, and Devan Mescall acknowledges the generous support of the Edwards Scholar Fellowship at the University of Saskatchewan. FIN 48 data and confidential tax return data were provided to one...

... No. 48 (FIN 48). Based on the findings of prior analytical and empirical research, we formulate and test hypotheses about the likelihood of voluntary CAP participation and the resulting effect on FIN 48 tax reserves. We find that firms with moderate-sized FIN 48 reserves are more likely to participate...

... and greater discretionary/permanent book-tax differences. Moreover, at the onset of FASB Interpretation No. 48, these firms have more uncertain tax positions; also, these firms' initial tax positions are likely supported by weaker facts and circumstances as indicated by their larger post-FIN 48 settlements...