Does a common set of accounting standards affect tax-motivated income shifting for multinational firms?

Simone, Lisa De

doi:10.1016/j.jacceco.2015.06.002

Cited by 153 publications

(92 citation statements)

References 69 publications

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“…(e.g. survey evidence by Klassen et al, 2017, Hoopes et al, 2015, evidence from archival data by Hopland et al, 2017, de Simone, 2016, Kim et al, 2015.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In this context, survey studies provide crucial insights into what has been called the "black box" of profit shifting (Hanlon and Heitzman, 2010) Due to the nature of internal corporate decision-making processes, this question is difficult to answer with archival data. Nonetheless, recent studies by Hopland et al (2017), de Simone (2016, and Kim et al (2015) address the call from Shackelford and Shevlin (2001) to move beyond merely documenting income shifting to better explaining, understanding and predicting it.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Due to the nature of firms' internal decision-making processes, this question is difficult to answer with archival data. Nonetheless, recent studies by Hopland et al (2017), de Simone (2016, and Kim et al (2015) show that specific research designs, reform settings and 1 For the effect of anti-avoidance legislation on the debt channel see, for example, Buettner et al, 2012, Blouin et al, 2014. For the effectiveness of transfer pricing regulations see, for example, Klassen and Laplante, 2012, Blouin et al, 2010, Lohse and Riedel, 2013, Beer and Loeprick, 2015, Saunders-Scott, 2015 estimation techniques make it possible to draw inferences on the formation of profit strategies even from archival data.…”

Section: Introductionmentioning

confidence: 99%

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On the Interdependency of Profit Shifting Channels and the Effectiveness of Anti-Avoidance Legislation

2017

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. The issue of base erosion and profit shifting has been on the international policy agenda for several years now. The aim of this paper is to examine how firms adjust their profit shifting mechanisms in a changing institutional environment. In particular, we test whether firms substitute one profit shifting strategy for another if respective costs change. To this end, we exploit changes in the strictness of transfer pricing regulations and thin capitalization rules over time in a panel of European multinational firms and study a quasi-experimental reform setting in France. We confirm existing evidence that tightening transfer pricing regulations reduces the tax sensitivity of earnings before interest and taxes (EBIT) substantially. Our results show, however, that this reduction includes both a reduction in profit shifting activity via the transfer pricing channel and a substitution with debt shifting. Moreover, firms using debt shifting to begin with rely more heavily on tax optimization of transfer prices when thin capitalization rules are strengthened. If transfer pricing regulations are also strict, the conditional reform effects show that the substitutive response is more pronounced for a subsample of firms with a high share of intangible property (IP). The difference-in-difference approach for the French tax reform illustrates an increase in profit shifting based on transfer prices for treated firms facing new restrictions on debt shifting. Again, the effect is stronger for IP intensive firms.

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“…(e.g. survey evidence by Klassen et al, 2017, Hoopes et al, 2015, evidence from archival data by Hopland et al, 2017, de Simone, 2016, Kim et al, 2015.…”

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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On the Interdependency of Profit Shifting Channels and the Effectiveness of Anti-Avoidance Legislation

2017

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“…Aprimoramentos em normas de contabilidade financeira que criam trade-offs entre os relatórios financeiros e os incentivos fiscais (De Simone, 2016), as exigências do público em geral contra as práti-cas de planejamento tributário abusivo e a agressividade tributária por grupos ativistas (Dyreng, Hoopes & Wilde, 2016) e a imprensa especializada tem colocado as questões tributárias no centro das atenções (Davis, Guenther, Krull & Williams, 2016). Desse modo, a pesquisa acadêmica sobre agressividade fiscal corporativa tem crescido em sintonia com esse interesse público, beneficiando de novas fontes de dados, melhorias em medidas de prevenção a planejamentos tributários abusivos e aprimoramento de técnicas econométricas (Bird & Karolyi, 2017).…”

Section: Introductionunclassified

Agressividade Tributária: Um Survey da Literatura

Martinez

2017

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Objetivo e Método: o objetivo deste artigo é revisar os estudos internacionais e no Brasil sobre a agressividade tributária, esta entendida como o comportamento de tentar evitar ou minimizar o ônus tributário explícito para a corporação. Enquanto tema de pesquisa acadêmica, o tax aggressiveness ou tax avoidance revela-se em um tópico diversificado e vasto, embora relativamente recente. Resultados e Contribuições: Entre as perguntas de pesquisa que nessa temática se desenvolvem, destaquem-se a identificação de quais seriam os determinantes da agressividade tributária da firma, apreciando: (i) características das firmas; (ii) atributos ambientais; (iii) restrições de gatekeepers; e (iv) incentivos para as firmas. Revisam-se os determinantes da agressividade tributária dos gestores e a influência da governança e estrutura de controle. Adicionalmente, identificam-se as potenciais consequências econômico-financeiras da agressividade tributária para as firmas e as proxies empíricas existentes para mensurar a agressividade tributária. O estudo se encerra com a apresentação de oportunidades futuras de pesquisa na temática.

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“…9 In addition to the BIG4 auditing companies, BDO is often considered as among the top auditors in Germany. 10 De Simone (2016) shows that the introduction of IFRS for unconsolidated statements in some European countries affected tax-motivated income shifting.…”

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confidence: 99%