The spread of aggressive corporate tax reporting : a detailed examination of the corporate-owned life insurance shelter

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The spread of aggressive corporate tax reporting : a detailed examination of the corporate-owned life insurance shelter

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dc.contributor.advisor Robinson, John Richard
dc.creator Brown, Jennifer Lynn, 1975-
dc.date.accessioned 2008-08-29T00:14:28Z
dc.date.available 2008-08-29T00:14:28Z
dc.date.created 2008-05
dc.date.issued 2008-08-29T00:14:28Z
dc.identifier.uri http://hdl.handle.net/2152/3850
dc.description.abstract This paper investigates the spread of aggressive corporate tax reporting by modeling a firm's decision to adopt the corporate-owned life insurance (COLI) shelter. I use a sample of known COLI participants to examine whether certain firm characteristics are associated with the decision to adopt a COLI shelter. I find some evidence that firms with higher performance-matched discretionary accruals are more likely to adopt a COLI shelter, suggesting a positive relation between aggressive financial reporting and aggressive tax reporting. I also find that firms with greater capital market visibility are less likely to adopt a COLI shelter, consistent with a potential reputational cost for being associated with aggressive tax avoidance activities. Further, my results suggest that COLI adopters are generally R&D intensive firms with low leverage and few foreign operations. In addition to firm specific characteristics, I consider two explanations for the spread of COLI adoption motivated by theory on diffusion of innovations and institutional isomorphism. I investigate whether firms imitate prior COLI adopters and whether COLI adoption spreads through common auditors. My results are not consistent with an imitation explanation. Further, my results suggest that having the same auditor as a prior COLI adopter does not increase the likelihood that a firm will adopt COLI.
dc.format.medium electronic
dc.language.iso eng
dc.rights Copyright © is held by the author. Presentation of this material on the Libraries' web site by University Libraries, The University of Texas at Austin was made possible under a limited license grant from the author who has retained all copyrights in the works.
dc.subject.lcsh Company-owned life insurance
dc.subject.lcsh Corporations--Taxation
dc.subject.lcsh Corporations--Accounting
dc.subject.lcsh Tax shelters
dc.subject.lcsh Tax planning
dc.title The spread of aggressive corporate tax reporting : a detailed examination of the corporate-owned life insurance shelter
dc.description.department Accounting
dc.identifier.oclc 241303402
dc.identifier.recnum b70654888
dc.type.genre Thesis
dc.type.material text
thesis.degree.department Accounting
thesis.degree.discipline Accounting
thesis.degree.grantor The University of Texas at Austin
thesis.degree.level Doctoral
thesis.degree.name Doctor of Philosophy

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