How does quasi-indexer ownership affect corporate tax planning?

Chen, Shuping; Huang, Ying; Li, Ningzhong; Shevlin, Terry

doi:10.1016/j.jacceco.2018.01.001

Cited by 127 publications

(66 citation statements)

References 45 publications

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“…In addition, the market capitalization that Russell uses to assign index membership is not observable to researchers. Various approaches have been developed to address this non-observability, but none of these approaches is perfect, and different approaches can lead to different inferences (Chen et al 2018). In this paper, we find that routine passive IO distractions reduce disclosure.…”

Section: Introductionmentioning

confidence: 84%

Institutional Investor Attention and Demand for Inconsequential Disclosures

2017

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We study how short-term changes in a proxy for passive institutional owner attention affect managers' short-term disclosure choices. Holding institutional ownership constant and controlling for industry-quarter effects, we find that managers respond to attention by increasing the number of forecasts and 8-K filings. Rather than alter the decision of whether to forecast or to provide more informative disclosures, attention causes minor disclosure adjustments. Although attention explains significant variation in the quantity of disclosure, we find no change in abnormal volume and volatility, the bid-ask spread, or price impact of trades. Overall, our evidence suggests that management responds to temporary institutional investor attention by making disclosures that have little effect on information quality or liquidity.

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Section: Introductionmentioning

confidence: 84%

Institutional Investor Attention and Demand for Inconsequential Disclosures

2017

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“…As tax planners often increase their leverage ratio, Maßbaum and Sureth-Sloane (2009) find that the so-called Miller equilibrium as well as decisions about firms capital structure depend significantly on tax system settings and its parameters. Chen, Huang, Li, and Shevlin (2019) state that quasi-indexer ownership leads to greater tax savings and they further find the improvement of overall company performance leads to greater tax saving than specific focus on tax planning. Debt shifting through the use of related party finance belongs to one of the three most significant profit shifting channels under existing tax system.…”

Section: Literature Reviewmentioning

confidence: 98%

Debt/Asset Ratio as Evidence of Profit-Shifting Behaviour in the Slovak Republic

Ištok

Kanderová

2019

Technological and Economic Development of Economy

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Companies use different methods and techniques to transfer taxable profits to tax havens. The paper aims at analysing the influence of the relocation of the registered office of Slovak companies in tax havens in relation to the leverage ratio and the ratio of debt per sales and to verify the use of debt by Slovak firms in the transfer of profits. In evaluating these indicators, we chose two approaches. We first analysed the change of indicators only for those firms that transferred their seat to lower tax jurisdiction. The analysis is complemented by a different view, when the selected indicators are compared to a group of businesses with a link to tax havens and with no link to tax havens. Our empirical results clearly indicate the tendency that firms in Slovakia benefit from the possibility of transferring profits to lower tax jurisdictions via debt channels. The median values of debt ratio after the transfer of the registered office to tax havens increased by 7.8%. The median value of the tracking indicator is 1.2 times higher for firms with tax haven links than for companies without links to tax havens.

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“…Corporate Governance: are defined as those having 1% percent or more of the bank capital equity and do not serve as an executive officer or director (Chen, et al 2019;Kolsi & Grassa, 2017;Mersni & Ben Othman, 2016;Ching et al,2006;Peasnell et al ,2005;Shleifer and Vishny ,1997;Jensen ;1993).…”

Section: Mediator Variablementioning

confidence: 99%

The Effect of Corporate Governance on Foreign Direct Investment in Jordanian Commercial Banks Listed at Amman Stock Exchange

Al-Dwiry¹,

Haddad²,

Marashdeh³

2020

IJHSS

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This study aimed to provide evidence of whether or not the corporate governance & foreign direct investment indicators of the Jordanian commercial banks listed at Amman Stock Exchange (ASE) are affected by variables that were proposed and to provide the important indicators of the relationship of corporate governance that can be used by the Jordanian commercial banks to attract the foreign direct investment. The study population consists of 13 Jordanian commercial banks governance of the Jordanian banks listed at Amman Stock Exchange (ASE). The study founds that there is a direct positive relationship between profitability-measured either by Earnings per share (EPS) and Return on assets (ROA)-and corporate governance. In contrast, a negative direct relationship between each of liquidity, return on equity (ROE), and the size of the company with corporate governance, finally the study found a positive direct relationship between corporate governance and foreign direct investment.

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How does quasi-indexer ownership affect corporate tax planning?

Cited by 127 publications

References 45 publications

Institutional Investor Attention and Demand for Inconsequential Disclosures

Institutional Investor Attention and Demand for Inconsequential Disclosures

Debt/Asset Ratio as Evidence of Profit-Shifting Behaviour in the Slovak Republic

The Effect of Corporate Governance on Foreign Direct Investment in Jordanian Commercial Banks Listed at Amman Stock Exchange

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