What Matters for In-House Tax Planning: Tax Function Power and Status
| Autor: | Matthew Ege, John R. Robinson, Bradford F. Hepfer |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
050208 finance Public economics media_common.quotation_subject 05 social sciences Rank (computer programming) Relative power 050201 accounting Power (social and political) Shock (economics) Accounting 0502 economics and business Economics Social hierarchy Tax planning Point estimation Function (engineering) Finance media_common |
| Zdroj: | The Accounting Review. 96:203-232 |
| ISSN: | 1558-7967 0001-4826 |
| DOI: | 10.2308/tar-2019-0363 |
| Popis: | Social hierarchy theory predicts that the power and status of an organizational function have a first-order effect on the function's ability to influence outcomes. We find that the rank of the title of the top tax executive is positively associated with tax planning after controlling for treatment effects. Our inferences remain when (1) using changes in the size of the c-suite as a shock to the relative power and status of the tax function, and (2) examining promotions and demotions in title rank. Point estimates suggest that tax function power and status are up to 2.6 times as important as tax planning resources, up to 4.0 times as important as tax function-specific expertise, and, more often than not, more important than manager fixed effects. Overall, results suggest that the power and status of the tax function is often what matters most in determining tax outcomes. JEL Classifications: H25; L22; M41. |
| Databáze: | OpenAIRE |
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