Internal Information Quality and Tax-Motivated Income Shifting

Sean T. McGuire · Scott G. Rane · Connie D. Weaver

81 citations0/0 files storedJournal of the American Taxation Association

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Taxation and Avoidance Taxation and Legal Issues Auditing, Earnings Management, Governance

Abstract

ABSTRACT This study examines whether the quality of a firm's internal information environment influences its tax-motivated income shifting activities. Although income shifting is an important tax-planning strategy, evidence regarding its determinants is limited. We find that higher internal information quality (IIQ) is associated with greater tax-motivated income shifting, which suggests that higher IIQ enables managers to better identify and execute income shifting opportunities. We find that the influence of IIQ on tax-motivated income shifting varies with firm characteristics. Specifically, we find that higher IIQ is associated with tax-motivated income shifting for firms with greater uncertainty and greater coordination needs. Overall, these results suggest that the improved information obtained through higher-quality internal information environments allows managers to increase tax-motivated income shifting.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 81 citations exist upstream.

References

2008Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches 2005The economic implications of corporate financial reporting 2010Cost Accounting: A Managerial Emphasis,1994Fiscal Paradise: Foreign Tax Havens and American Business 2003Financial accounting information, organizational complexity and corporate governance systems 2008The Importance of Distinguishing Errors from Irregularities in Restatement Research: The Case of Restatements and CEO/CFO Turnover 2005Credibility of Management Forecasts 1991Taxes, Tariffs and Transfer Pricing in Multinational Corporate Decision Making

Cited by

2019The Moderating Role of Internal Control in Tax Avoidance: Evidence from a COSO-Based Internal Control Index in China 2019Implicit Corporate Taxes and Income Shifting 2019Corporate Tax Avoidance and the Real Effects of Taxation: A Review 2019R&D and the Rising Foreign Profitability of U.S. Multinational Corporations 2019Tax Avoidance, Uncertainty, and Firm Risk

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.