Current Search: Corporations--Taxation (x)
View All Items
- Title
- CEO CHARITABLE INCLINATION AND CORPORATE TAX AVOIDANCE.
- Creator
- Wang, Lin, Kohlbeck, Mark, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
Many CEOs are philanthropists and express their passion for social welfare through service to various charities and foundations. However, it is unclear whether these behaviors are driven by intrinsic motivations, such as prosocial value and altruism, or by extrinsic and egoistic motivations like reputation and social network building. To understand the underlying motivations and consequences of these behaviors, I build on the self-determination theory and investigate how CEO charitable...
Show moreMany CEOs are philanthropists and express their passion for social welfare through service to various charities and foundations. However, it is unclear whether these behaviors are driven by intrinsic motivations, such as prosocial value and altruism, or by extrinsic and egoistic motivations like reputation and social network building. To understand the underlying motivations and consequences of these behaviors, I build on the self-determination theory and investigate how CEO charitable inclination, defined as CEO sitting on charity boards, affects corporate tax avoidance. I further examine how CEO charitable inclination impacts firm value through corporate tax policies. I find that CEO charitable inclination is negatively associated with corporate tax avoidance. Specifically, firms with charitable-inclined CEOs pay higher cash taxes and are less likely to engage in aggressive forms of tax planning, such as tax shelters. The results are robust to different model specifications and alternative measures. Further, I conduct additional analysis examining the underlying motivations of CEO charitable inclination and find it positively associated with intrinsic motivations, such as prosocial values and high moral standards. These results provide strong evidence that charitable-inclined CEOs, driven by their intrinsic motivations, are concerned about social welfare and government revenue. These CEOs are less likely to engage in unethical or immoral behaviors, such as aggressive tax planning and tax evasion. However, I do not find evidence that CEO charitable inclination has a moderating effect on the relationship between corporate tax avoidance and firm value.
Show less - Date Issued
- 2022
- PURL
- http://purl.flvc.org/fau/fd/FA00013903
- Subject Headings
- Corporations--Taxation, Charity
- Format
- Document (PDF)
- Title
- A new framework for determining the magnitude of the corporate tax shelter problem.
- Creator
- DiCicco, Joel Mark., Florida Atlantic University, Thai, Khi V.
- Abstract/Description
-
This dissertation introduces a new definition of a corporate tax shelter as any deduction taken by a corporation that was not intended as a tax expenditure by Congress. Unlike predecessor definitions of tax shelters that utilize laundry lists of indicators, this new definition effectively excludes tax code abuses, yet allows for the employment of legitimate corporate loopholes. Under this new paradigm of a tax shelter, a simple macro-framework utilizing only readily-available data and public...
Show moreThis dissertation introduces a new definition of a corporate tax shelter as any deduction taken by a corporation that was not intended as a tax expenditure by Congress. Unlike predecessor definitions of tax shelters that utilize laundry lists of indicators, this new definition effectively excludes tax code abuses, yet allows for the employment of legitimate corporate loopholes. Under this new paradigm of a tax shelter, a simple macro-framework utilizing only readily-available data and public information produced results estimating the impact of corporate tax shelters on federal receipts similar to estimates produced by other researchers using complicated econometric models that rely heavily on confidential tax return information.
Show less - Date Issued
- 2003
- PURL
- http://purl.flvc.org/fau/fd/FADT12041
- Subject Headings
- Tax shelters--United States, Corporations--Taxation--United States
- Format
- Document (PDF)
- Title
- The impact of a value-added tax on the cash flow of corporations.
- Creator
- Murphy, John Aloysius Daniel, Florida Atlantic University, Hoffman, Michael J. R.
- Abstract/Description
-
Advocates of a value-added tax claim VAT is superior to the existing corporate income tax (CIT) in the area of economic efficiency, i.e., tax neutrality. Since tax neutrality is a major criterion for tax policy analysis, VAT's superior allocative efficiency relative to a corporate income tax is an argument VAT proponents use to promote adoption of a value-added tax. VAT supporters maintain that CIT distorts allocation of production resources while VAT, a proportional tax, is insensitive to...
Show moreAdvocates of a value-added tax claim VAT is superior to the existing corporate income tax (CIT) in the area of economic efficiency, i.e., tax neutrality. Since tax neutrality is a major criterion for tax policy analysis, VAT's superior allocative efficiency relative to a corporate income tax is an argument VAT proponents use to promote adoption of a value-added tax. VAT supporters maintain that CIT distorts allocation of production resources while VAT, a proportional tax, is insensitive to production methods or use of production resources. This argument is questionable because assessments of corporate income tax neutrality automatically include the impact of CIT on corporate cash flow since CIT, classified as an expense, is a cash drain. The incidence issue aside, VAT is not considered an expense but a pass-through liability with cash flow impact resulting from timing differences existing between receivables, payables and government remittances. The impact of VAT on corporate cash flow is not automatically included when assessing value-added tax neutrality nor is it evident that VAT proponents have consciously considered it in their evaluations. This study empirically examines the impact of VAT on cash flows of manufacturing corporations in order that value-added tax neutrality might be better assessed. Impact of VAT on cash flow is simulated for an assumed year of effectivity and two follow-on years. Multiple regression techniques are used to evaluate statistically the relationships between company characteristics, industry group membership and cash flow due to VAT. The results indicate that adoption of a VAT in the United States would cause a significant change in cash flows in the year of effectivity. Strong influence by sales, payables turnover, and to a lesser extent, receivables turnover is observed. The results also indicate existence of differential cash flow impact across manufacturing industry subgroups suggesting that VAT neutrality requires rethinking.
Show less - Date Issued
- 1991
- PURL
- http://purl.flvc.org/fcla/dt/12282
- Subject Headings
- Corporations--Taxation--United States, Value-Added Tax--United States
- Format
- Document (PDF)