Title: Analysis of the implicit taxes related to executive tax effects
Authors: Andries, Kathleen
Cools, Martine
Van den Abbeele, Alexandra
Van Uytbergen, Steve
Issue Date: 2011
Conference: EAA (European Accounting Association) Annual Conference edition:34 location:Rome, Italy date:20-22 April 2011
Abstract: This study builds on Dyreng et al. (2010) and Jennings et al. (2010) and focuses on measuring the implicit taxes that are related to the employment of a tax-avoiding executive. We use the method introduced by Bertrand and Schoar (2003) to identify executives that have a significant influence on their company’s tax policy. Afterwards, we focus on this group of executives that have a significant influence on their company’s tax policy and relate them to four measures of implicit taxes introduced by Jennings et al. (2010). In general, our results indicate that both tax-avoiding and taxseeking executive behaviour is detrimental for the firm in which the executives are employed. Both tax-avoiding and tax-seeking behaviour are related to a lower pre-tax income and a lower after-tax income. From our results, we can conclude that implicit taxes vary across our different subsamples of executives.
Publication status: published
KU Leuven publication type: IMa
Appears in Collections:Research Center Accountancy, Leuven
Department of Accountancy, Finance and Insurance (AFI), Leuven - miscellaneous
Department of Accountancy and Taxation, Campus Carolus Antwerp
Faculty of Economics and Business (FEB) - miscellaneous
Department of Financial Management, Campus Carolus Antwerp

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