Financial accounting effects of tax aggressiveness: Contracting and measurement

A.M.B. De Waegenaere, R. Sansing, J.L. Wielhouwer

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This study examines a setting in which a tax-reporting decision is delegated to a firm's tax manager. Using financial accounting measures of tax expense to evaluate the tax manager allows the firm to efficiently attain the level of tax avoidance it prefers, despite the fact that the consequences of the tax-reporting decision will occur in the future. The study also examines how well two accounting measures of tax aggressiveness — cash taxes paid and the unrecognized tax benefit — distinguish between conservative and aggressive firms.
Original languageEnglish
Pages (from-to)223-242
JournalContemporary Accounting Research
Volume32
Issue number1
Early online date29 Sep 2014
DOIs
Publication statusPublished - Apr 2015

Fingerprint

Tax
Financial accounting
Contracting
Managers
Tax avoidance
Expenses
Cash

Cite this

@article{4b84de1a8f154106a263e2d78eb4dd53,
title = "Financial accounting effects of tax aggressiveness: Contracting and measurement",
abstract = "This study examines a setting in which a tax-reporting decision is delegated to a firm's tax manager. Using financial accounting measures of tax expense to evaluate the tax manager allows the firm to efficiently attain the level of tax avoidance it prefers, despite the fact that the consequences of the tax-reporting decision will occur in the future. The study also examines how well two accounting measures of tax aggressiveness — cash taxes paid and the unrecognized tax benefit — distinguish between conservative and aggressive firms.",
author = "{De Waegenaere}, A.M.B. and R. Sansing and J.L. Wielhouwer",
year = "2015",
month = "4",
doi = "10.1111/1911-3846.12068",
language = "English",
volume = "32",
pages = "223--242",
journal = "Contemporary Accounting Research",
issn = "0823-9150",
publisher = "Wiley-Blackwell",
number = "1",

}

Financial accounting effects of tax aggressiveness : Contracting and measurement. / De Waegenaere, A.M.B.; Sansing, R.; Wielhouwer, J.L.

In: Contemporary Accounting Research, Vol. 32, No. 1, 04.2015, p. 223-242.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Financial accounting effects of tax aggressiveness

T2 - Contracting and measurement

AU - De Waegenaere, A.M.B.

AU - Sansing, R.

AU - Wielhouwer, J.L.

PY - 2015/4

Y1 - 2015/4

N2 - This study examines a setting in which a tax-reporting decision is delegated to a firm's tax manager. Using financial accounting measures of tax expense to evaluate the tax manager allows the firm to efficiently attain the level of tax avoidance it prefers, despite the fact that the consequences of the tax-reporting decision will occur in the future. The study also examines how well two accounting measures of tax aggressiveness — cash taxes paid and the unrecognized tax benefit — distinguish between conservative and aggressive firms.

AB - This study examines a setting in which a tax-reporting decision is delegated to a firm's tax manager. Using financial accounting measures of tax expense to evaluate the tax manager allows the firm to efficiently attain the level of tax avoidance it prefers, despite the fact that the consequences of the tax-reporting decision will occur in the future. The study also examines how well two accounting measures of tax aggressiveness — cash taxes paid and the unrecognized tax benefit — distinguish between conservative and aggressive firms.

U2 - 10.1111/1911-3846.12068

DO - 10.1111/1911-3846.12068

M3 - Article

VL - 32

SP - 223

EP - 242

JO - Contemporary Accounting Research

JF - Contemporary Accounting Research

SN - 0823-9150

IS - 1

ER -