...Kelly Wentland ABSTRACT This study investigates whether industrial diversification generally provides a tax advantage and how the convexity of the tax system contributes to this benefit. The main findings show that multi-industry operations lower a firm’s taxes and income volatility relative...

...Lisa De Simone; Matthew S. Ege; Bridget Stomberg ABSTRACT We propose that auditor-provided tax services (tax NAS) improve internal control quality by accelerating audit firm awareness of transactions material to the financial statements. Using data from 2004 to 2012, we find robust evidence...

...Benjamin C. Ayers; Casey M. Schwab; Steven Utke ABSTRACT We develop estimates of a firm's foreign earnings designated as permanently reinvested (PRE) and the unrecorded deferred tax liability (TAX) associated with PRE that are independent of whether a firm explicitly discloses this information. We...

...Diana Falsetta; Timothy J. Rupert; Arnold M. Wright ABSTRACT This study examines the effect of timing (gradual versus immediate) and direction (tax increase or decrease) of a tax change on taxpayer behavior. Specifically, we focus on capital gain tax changes and preferences for investment...