...Sean T. McGuire; Scott G. Rane; Connie D. Weaver ABSTRACT We examine whether cost structure influences tax-motivated income shifting. We predict and find that U.S. multinational corporations (MNCs) with a less rigid cost structure engage in greater levels of tax-motivated income shifting relative...

...Sanjeev Bhojraj; Robert J. Bloomfield; Youngki Jang; Nir Yehuda ABSTRACT We provide evidence that credit investors do not fully impound the implications of firms' cost structure (or operating leverage) when pricing credit default swaps. Information about firms' cost structure is not disclosed...