The Role of Managerial Ability in Corporate Tax Avoidance
Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to efficiently manage corporate resources engage in greater tax avoid...
Gespeichert in:
| Veröffentlicht in: | Management science 2017-10, Vol.63 (10), p.3285-3310 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 3310 |
|---|---|
| container_issue | 10 |
| container_start_page | 3285 |
| container_title | Management science |
| container_volume | 63 |
| creator | Koester, Allison Shevlin, Terry Wangerin, Daniel |
| description | Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to efficiently manage corporate resources engage in greater tax avoidance. Our results show that moving from the lower to upper quartile of managerial ability is associated with a 3.15% (2.50%) reduction in a firm’s one-year (five-year) cash effective tax rate. We examine how higher-ability managers reduce income tax payments and find that they engage in greater state tax planning activities, shift more income to foreign tax havens, make more research and development credit claims, and make greater investments in assets that generate accelerated depreciation deductions. Identifying a manager characteristic related to firms’ tax policy decisions adds to our understanding of the factors that explain the substantial variation in corporate income tax payments across firms.
This paper was accepted by Mary Barth, accounting
. |
| doi_str_mv | 10.1287/mnsc.2016.2510 |
| format | Article |
| fullrecord | <record><control><sourceid>gale_proqu</sourceid><recordid>TN_cdi_gale_infotracacademiconefile_A515125217</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><galeid>A515125217</galeid><jstor_id>45149144</jstor_id><sourcerecordid>A515125217</sourcerecordid><originalsourceid>FETCH-LOGICAL-c631t-13c93c70347c2d44bd1a4f5b916b5097a2e016bd20200254a3b8101e5fcdf97c3</originalsourceid><addsrcrecordid>eNqFkdGL1DAQxoMouJ6--iYUBJ_smkmTpn1cFvWEE0HW55Cm016WNlmT7HH335uyh-fCggQmEH7fzJf5CHkLdA2skZ9mF82aUajXTAB9RlYgWF0KQeE5WVHKRAktbV-SVzHuKaWykfWKtLtbLH76CQs_FN-10yMGq6di09nJpofCumLrw8EHnbDY6ftic-dtr53B1-TFoKeIbx7vK_Lry-fd9rq8-fH123ZzU5q6glRCZdrKSFpxaVjPedeD5oPoWqg7QVupGWbLXc8oWzxyXXUNUEAxmH5opamuyPtT30Pwv48Yk9r7Y3B5pGK1zKxsmvqJGvWEyrrBp6DNbKNRGwECmGAgM1VeoEZ0GPTkHQ42P5_x6wt8Pj3O1lwUfDgTZCbhfRr1MUZ1Dn78B-yO0TqMuUQ73qZ44i8ZMcHHGHBQh2BnHR4UULWkr5b01ZK-WtLPgncnwT4mH_7SXABvgfOnTSyfCnP8X78_hZK1eA</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2678107886</pqid></control><display><type>article</type><title>The Role of Managerial Ability in Corporate Tax Avoidance</title><source>Jstor Complete Legacy</source><source>INFORMS PubsOnLine</source><source>EBSCOhost Business Source Complete</source><creator>Koester, Allison ; Shevlin, Terry ; Wangerin, Daniel</creator><creatorcontrib>Koester, Allison ; Shevlin, Terry ; Wangerin, Daniel</creatorcontrib><description>Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to efficiently manage corporate resources engage in greater tax avoidance. Our results show that moving from the lower to upper quartile of managerial ability is associated with a 3.15% (2.50%) reduction in a firm’s one-year (five-year) cash effective tax rate. We examine how higher-ability managers reduce income tax payments and find that they engage in greater state tax planning activities, shift more income to foreign tax havens, make more research and development credit claims, and make greater investments in assets that generate accelerated depreciation deductions. Identifying a manager characteristic related to firms’ tax policy decisions adds to our understanding of the factors that explain the substantial variation in corporate income tax payments across firms.
This paper was accepted by Mary Barth, accounting
.</description><identifier>ISSN: 0025-1909</identifier><identifier>EISSN: 1526-5501</identifier><identifier>DOI: 10.1287/mnsc.2016.2510</identifier><language>eng</language><publisher>Linthicum: INFORMS</publisher><subject>Ability ; Analysis ; Corporate income taxes ; Corporate taxes ; Income taxes ; Management ; management style ; Management techniques ; managerial ability ; Managerial skills ; Managers ; Methods ; Payments ; R&D ; Research & development ; State taxes ; Tax avoidance ; Tax evasion ; Tax havens ; Tax planning ; Tax policy ; Tax rates ; Taxation</subject><ispartof>Management science, 2017-10, Vol.63 (10), p.3285-3310</ispartof><rights>2017 INFORMS</rights><rights>COPYRIGHT 2017 Institute for Operations Research and the Management Sciences</rights><rights>Copyright Institute for Operations Research and the Management Sciences Oct 2017</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c631t-13c93c70347c2d44bd1a4f5b916b5097a2e016bd20200254a3b8101e5fcdf97c3</citedby><cites>FETCH-LOGICAL-c631t-13c93c70347c2d44bd1a4f5b916b5097a2e016bd20200254a3b8101e5fcdf97c3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/45149144$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://pubsonline.informs.org/doi/full/10.1287/mnsc.2016.2510$$EHTML$$P50$$Ginforms$$H</linktohtml><link.rule.ids>314,776,780,799,3679,27901,27902,57992,58225,62589</link.rule.ids></links><search><creatorcontrib>Koester, Allison</creatorcontrib><creatorcontrib>Shevlin, Terry</creatorcontrib><creatorcontrib>Wangerin, Daniel</creatorcontrib><title>The Role of Managerial Ability in Corporate Tax Avoidance</title><title>Management science</title><description>Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to efficiently manage corporate resources engage in greater tax avoidance. Our results show that moving from the lower to upper quartile of managerial ability is associated with a 3.15% (2.50%) reduction in a firm’s one-year (five-year) cash effective tax rate. We examine how higher-ability managers reduce income tax payments and find that they engage in greater state tax planning activities, shift more income to foreign tax havens, make more research and development credit claims, and make greater investments in assets that generate accelerated depreciation deductions. Identifying a manager characteristic related to firms’ tax policy decisions adds to our understanding of the factors that explain the substantial variation in corporate income tax payments across firms.
This paper was accepted by Mary Barth, accounting
.</description><subject>Ability</subject><subject>Analysis</subject><subject>Corporate income taxes</subject><subject>Corporate taxes</subject><subject>Income taxes</subject><subject>Management</subject><subject>management style</subject><subject>Management techniques</subject><subject>managerial ability</subject><subject>Managerial skills</subject><subject>Managers</subject><subject>Methods</subject><subject>Payments</subject><subject>R&D</subject><subject>Research & development</subject><subject>State taxes</subject><subject>Tax avoidance</subject><subject>Tax evasion</subject><subject>Tax havens</subject><subject>Tax planning</subject><subject>Tax policy</subject><subject>Tax rates</subject><subject>Taxation</subject><issn>0025-1909</issn><issn>1526-5501</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2017</creationdate><recordtype>article</recordtype><sourceid>N95</sourceid><recordid>eNqFkdGL1DAQxoMouJ6--iYUBJ_smkmTpn1cFvWEE0HW55Cm016WNlmT7HH335uyh-fCggQmEH7fzJf5CHkLdA2skZ9mF82aUajXTAB9RlYgWF0KQeE5WVHKRAktbV-SVzHuKaWykfWKtLtbLH76CQs_FN-10yMGq6di09nJpofCumLrw8EHnbDY6ftic-dtr53B1-TFoKeIbx7vK_Lry-fd9rq8-fH123ZzU5q6glRCZdrKSFpxaVjPedeD5oPoWqg7QVupGWbLXc8oWzxyXXUNUEAxmH5opamuyPtT30Pwv48Yk9r7Y3B5pGK1zKxsmvqJGvWEyrrBp6DNbKNRGwECmGAgM1VeoEZ0GPTkHQ42P5_x6wt8Pj3O1lwUfDgTZCbhfRr1MUZ1Dn78B-yO0TqMuUQ73qZ44i8ZMcHHGHBQh2BnHR4UULWkr5b01ZK-WtLPgncnwT4mH_7SXABvgfOnTSyfCnP8X78_hZK1eA</recordid><startdate>20171001</startdate><enddate>20171001</enddate><creator>Koester, Allison</creator><creator>Shevlin, Terry</creator><creator>Wangerin, Daniel</creator><general>INFORMS</general><general>Institute for Operations Research and the Management Sciences</general><scope>AAYXX</scope><scope>CITATION</scope><scope>N95</scope><scope>XI7</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20171001</creationdate><title>The Role of Managerial Ability in Corporate Tax Avoidance</title><author>Koester, Allison ; Shevlin, Terry ; Wangerin, Daniel</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c631t-13c93c70347c2d44bd1a4f5b916b5097a2e016bd20200254a3b8101e5fcdf97c3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2017</creationdate><topic>Ability</topic><topic>Analysis</topic><topic>Corporate income taxes</topic><topic>Corporate taxes</topic><topic>Income taxes</topic><topic>Management</topic><topic>management style</topic><topic>Management techniques</topic><topic>managerial ability</topic><topic>Managerial skills</topic><topic>Managers</topic><topic>Methods</topic><topic>Payments</topic><topic>R&D</topic><topic>Research & development</topic><topic>State taxes</topic><topic>Tax avoidance</topic><topic>Tax evasion</topic><topic>Tax havens</topic><topic>Tax planning</topic><topic>Tax policy</topic><topic>Tax rates</topic><topic>Taxation</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Koester, Allison</creatorcontrib><creatorcontrib>Shevlin, Terry</creatorcontrib><creatorcontrib>Wangerin, Daniel</creatorcontrib><collection>CrossRef</collection><collection>Gale Business: Insights</collection><collection>Business Insights: Essentials</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Management science</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Koester, Allison</au><au>Shevlin, Terry</au><au>Wangerin, Daniel</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>The Role of Managerial Ability in Corporate Tax Avoidance</atitle><jtitle>Management science</jtitle><date>2017-10-01</date><risdate>2017</risdate><volume>63</volume><issue>10</issue><spage>3285</spage><epage>3310</epage><pages>3285-3310</pages><issn>0025-1909</issn><eissn>1526-5501</eissn><abstract>Most prior studies model tax avoidance as a function of firm-level characteristics and do not consider how individual executive characteristics affect tax avoidance. This paper investigates whether executives with superior ability to efficiently manage corporate resources engage in greater tax avoidance. Our results show that moving from the lower to upper quartile of managerial ability is associated with a 3.15% (2.50%) reduction in a firm’s one-year (five-year) cash effective tax rate. We examine how higher-ability managers reduce income tax payments and find that they engage in greater state tax planning activities, shift more income to foreign tax havens, make more research and development credit claims, and make greater investments in assets that generate accelerated depreciation deductions. Identifying a manager characteristic related to firms’ tax policy decisions adds to our understanding of the factors that explain the substantial variation in corporate income tax payments across firms.
This paper was accepted by Mary Barth, accounting
.</abstract><cop>Linthicum</cop><pub>INFORMS</pub><doi>10.1287/mnsc.2016.2510</doi><tpages>26</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0025-1909 |
| ispartof | Management science, 2017-10, Vol.63 (10), p.3285-3310 |
| issn | 0025-1909 1526-5501 |
| language | eng |
| recordid | cdi_gale_infotracacademiconefile_A515125217 |
| source | Jstor Complete Legacy; INFORMS PubsOnLine; EBSCOhost Business Source Complete |
| subjects | Ability Analysis Corporate income taxes Corporate taxes Income taxes Management management style Management techniques managerial ability Managerial skills Managers Methods Payments R&D Research & development State taxes Tax avoidance Tax evasion Tax havens Tax planning Tax policy Tax rates Taxation |
| title | The Role of Managerial Ability in Corporate Tax Avoidance |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-02-08T19%3A41%3A35IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-gale_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=The%20Role%20of%20Managerial%20Ability%20in%20Corporate%20Tax%20Avoidance&rft.jtitle=Management%20science&rft.au=Koester,%20Allison&rft.date=2017-10-01&rft.volume=63&rft.issue=10&rft.spage=3285&rft.epage=3310&rft.pages=3285-3310&rft.issn=0025-1909&rft.eissn=1526-5501&rft_id=info:doi/10.1287/mnsc.2016.2510&rft_dat=%3Cgale_proqu%3EA515125217%3C/gale_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2678107886&rft_id=info:pmid/&rft_galeid=A515125217&rft_jstor_id=45149144&rfr_iscdi=true |