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Available. Open Access. Open Access
Article
Publication date: 12 November 2024

Bill B. Francis, Raffi E. García and Jyothsna G. Harithsa

This paper aims to examine how bank stress tests affect bank tax planning.

249

Abstract

Purpose

This paper aims to examine how bank stress tests affect bank tax planning.

Design/methodology/approach

The study uses US bank stress test bank size thresholds and a regression discontinuity design to investigate the effect of the Dodd-Frank Act and the instituted bank stress tests on bank tax planning. We use different measures of tax planning, including bank-specific measures and measures of tax avoidance, tax aggressiveness, and effective tax planning from recent literature. Our regression discontinuity and difference-in-differences regression analyses include bank and year fixed-effects and lagged bank characteristics to control for potential endogeneity.

Findings

This study finds that stress tests have the unintended consequences of intensifying tax planning and increasing tax avoidance. Stress-test banks increase tax avoidance by accelerating charge-offs, net interest, and non-interest expenses. However, this increase in tax planning is not optimally maximized, leading to lower effective tax planning compared to non-stress-test banks. Banks with a substantial increase in tax avoidance under the Dodd–Frank Act tend to increase their risk, investing in high-risk-weight assets and lending in riskier loan categories. These findings are consistent with tax minimization conditions under added regulatory attention and policy uncertainty.

Originality/value

Literature on bank tax planning is limited. Most tax avoidance literature excludes financial institutions such as bank holding companies mainly due to differences in business practices and regulatory frameworks. This study is the first to investigate tax planning behavior among US banks. The current study thus extends the research field by examining the effect of bank transparency regulations, such as bank stress tests, on bank tax planning activities. Our findings have a direct bank policy implication. They show that stress testing has the unintended consequences of increasing tax planning activities and consequently increasing risk-taking on banks with high tax avoidance, which goes against the goals of stress testing regulations.

Details

China Accounting and Finance Review, vol. 27 no. 1
Type: Research Article
ISSN: 1029-807X

Keywords

Available. Open Access. Open Access
Book part
Publication date: 4 October 2023

Pia Rockhold

Based on an extensive literature review, this chapter outlines key developments in global health and research during the last century with focus on the emergence of violence and…

Abstract

Based on an extensive literature review, this chapter outlines key developments in global health and research during the last century with focus on the emergence of violence and child maltreatment as international public health priorities. Violence has been known to humans for millennia, but only in the late 1990s was it recognised as a global public health issue. Every year, an estimated 1 billion children are exposed to trauma, loss, abuse and neglect. Child maltreatment takes a social and economic toll on countries. Research initiated in 1985 found child maltreatment to be associated with increased disease, disability and premature death in adult survivors. The global availability of data on child maltreatment is, however, sporadic with low validity and reliability. Few global experts have consulted and involved the survivors of child maltreatment, as the experts by experience, in their attempts to provide a more comprehensive picture of reality. Youth and adult survivors of child maltreatment are often traumatised by the experience, and it is important to use trauma-informed approaches to prevent re-traumatisation. Participatory and inclusive research on child maltreatment is only in its infancy. There is a need for more inclusive research, designed by survivors for survivors, hereby strengthening local capacity building and informing policymakers from the bottom up. This chapter reviews lessons learnt and provides recommendations for how to enhance the participation and inclusion of the experts by experience in research on child maltreatment.

Details

Participatory Research on Child Maltreatment with Children and Adult Survivors
Type: Book
ISBN: 978-1-80455-529-3

Keywords

Available. Open Access. Open Access
Article
Publication date: 10 October 2024

V.P. Priyesh and Lukose P.J. Jijo

This study examines the earnings quality of private-subsidiary firms using a large sample data from India.

406

Abstract

Purpose

This study examines the earnings quality of private-subsidiary firms using a large sample data from India.

Design/methodology/approach

The impact of parent–subsidiary relationship on earnings quality is examined using two common proxies. Findings are robust to alternative research designs, including different earnings quality proxies, endogeneity and matching techniques.

Findings

The study finds that private firms that are subsidiaries of listed firms tend to have lesser (greater) earnings quality (manipulation). Further, the study reports that this relationship is more pronounced when the parent firm is relatively larger than the subsidiaries. The study finds no evidence that Big 4 affiliation of the parent company improves earnings quality among private subsidiaries; instead, it exacerbates earnings manipulation in some cases. Finally, the authors document that subsidiary firms use tax management, as proxied by book tax differences, to engage in income-increasing earnings manipulation.

Research limitations/implications

This study examines how affiliation with a listed entity as a subsidiary impacts the earnings quality of private companies. Future research could investigate the financial reporting practices of both private subsidiary firms and standalone private firms, comparing them in similar or differing regulatory environments across various countries.

Practical implications

The findings of this study will help investors, bankers, creditors and regulators to understand the financial reporting of private firms. The study calls for enhanced audit quality at the subsidiary level by making the auditor of the parent firm responsible for auditing a subsidiary, a practice that is currently absent in India.

Originality/value

The results contribute to the existing debate on how firms manage earnings using data of private firms in a large emerging market setting. Previous research has not paid enough attention to the earnings quality of private subsidiaries. The study also emphasizes the necessity for a more robust system of governance and supervision for private firms, particularly in India and generally in other countries.

Details

China Accounting and Finance Review, vol. 27 no. 1
Type: Research Article
ISSN: 1029-807X

Keywords

Available. Open Access. Open Access
Article
Publication date: 12 March 2018

Stefan Scheidt, Carsten Gelhard, Juliane Strotzer and Jörg Henseler

While the branding of individuals has attracted increasing attention from practitioners in recent decades, understanding of personal branding still remains limited, especially…

6240

Abstract

Purpose

While the branding of individuals has attracted increasing attention from practitioners in recent decades, understanding of personal branding still remains limited, especially with regard to the branding of celebrity CEOs. To contribute to this debate, this paper aims to explore the co-branding of celebrity CEOs and corporate brands, integrating endorsement theory and the concept of meaning transfer at a level of brand attributes.

Design/methodology/approach

A between-subjects true experimental design was chosen for each of the two empirical studies with a total of 268 participants, using mock newspaper articles about a succession scenario at the CEO level of different companies. The study is designed to analyse the meaning transfer from celebrity CEO to corporate brand and vice versa using 16 personality attributes.

Findings

This study gives empirical support for meaning transfer effects at the brand attribute level in both the celebrity-CEO-to-corporate-brand and corporate-brand-to-celebrity-CEO direction, which confirms the applicability of the concept of brand endorsement to celebrity CEOs and the mutuality in co-branding models. Furthermore, a more detailed and expansive perspective on the definition of endorsement is provided as well as managerial guidance for building celebrity CEOs and corporate brands in consideration of meaning transfer effects.

Originality/value

This study is one of only few analysing the phenomenon of meaning transfer between brands that focus on non-evaluative associations (i.e. personality attributes). It is unique in its scope, insofar as the partnering relationship between celebrity CEOs and corporate brands have not been analysed empirically from this perspective yet. It bridges the gap between application in practice and the academic foundations, and it contributes to a broader understanding and definition of celebrity endorsement.

Details

Journal of Product & Brand Management, vol. 27 no. 2
Type: Research Article
ISSN: 1061-0421

Keywords

Available. Open Access. Open Access
Article
Publication date: 3 October 2024

Riccardo Camilli, Alessandro Mechelli and Lorenzo Coronella

This study aims to examine the over 60-year evolution of behavioral accounting research (BAR), with the main aim of critically and accurately tracing its past, present and future.

305

Abstract

Purpose

This study aims to examine the over 60-year evolution of behavioral accounting research (BAR), with the main aim of critically and accurately tracing its past, present and future.

Design/methodology/approach

This study used Scopus and Google Scholar databases to collect 2,263 articles of BAR published on relevant accounting journals. Thus, this study used Bibliometrix to provide a temporal overview of articles and a temporally oriented network co-occurrence analysis of BAR topics.

Findings

This study retraces the history of BAR since its origins and, also on the basis of triggering events inside (e.g. Nobel Prizes for behavioral economics studies) and outside (e.g. accounting scandals) the academic debate, this study critically discusses the evolution and interconnections of BAR topics. Then, future research is addressed toward main promising avenues, thus integrating recent technological applications into the behavioral accounting experimental designs to improve their external validity, exploring the potential positive effects of professionals’ heuristics in performing accounting tasks under certain environmental conditions, exploiting behavioral accounting frameworks to analyze and improve sustainability reporting and sustainability performance management.

Originality/value

Although BAR is rich of contributions, including subfields and contaminations, it lacks a holistic evaluation of its origins, development and future perspectives. In this vein, to the best of the authors’ knowledge, this is the first study to use a bibliometric analysis to evaluate the evolution of BAR.

Details

Journal of Management History, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1751-1348

Keywords

Available. Open Access. Open Access
Article
Publication date: 2 September 2024

Alexander Hofer, Ewald Aschauer and Patrick Velte

This study aims to analyse the motivations and underlying assumptions of decision makers driving the adoption of sustainability-oriented targets in executive compensation (SCTs…

750

Abstract

Purpose

This study aims to analyse the motivations and underlying assumptions of decision makers driving the adoption of sustainability-oriented targets in executive compensation (SCTs) to better understand SCTs’ impact on sustainability performance.

Design/methodology/approach

Through a qualitative approach, 15 in-depth interviews are conducted in a two-tier governance setting. Participants include management and supervisory board members, compensation consultants and other stakeholders involved in proxy voting.

Findings

SCT implementation is primarily determined by meeting shareholders’ expectations rather than those of other stakeholders. Decision makers react in a differentiated way to increased expectations by implementing either primarily symbolic or substantive measures and encounter different implementation challenges like insufficient data quality and a lack of experience within supervisory boards, both of which potentially contribute to decoupling.

Research limitations/implications

The study offers valuable insights for companies in designing SCTs and emphasises the significance of addressing decoupling to effectively enhance sustainability performance through SCTs and provides a foundation for future studies aimed at analysing this phenomenon.

Originality/value

Using a neo-institutional theory lens, this study marks one of the first interview-based investigations to distinguish between symbolic and substantial SCTs. It delves deeply into the role of decoupling and the associated challenges, offering fresh perspectives within the under-researched framework of a two-tier corporate governance structure. Moreover, this study aims to meticulously capture the real-world design practices and implementation processes of SCTs through experts, an aspect that was emphasised as a limitation in previous studies.

Details

Qualitative Research in Accounting & Management, vol. 21 no. 5
Type: Research Article
ISSN: 1176-6093

Keywords

Available. Open Access. Open Access
Article
Publication date: 19 June 2023

Francesco Scarpa and Silvana Signori

This study aims to contribute to the debate about the place of corporate taxation in corporate social responsibility (CSR) by reviewing the present state of research, offering a…

5895

Abstract

Purpose

This study aims to contribute to the debate about the place of corporate taxation in corporate social responsibility (CSR) by reviewing the present state of research, offering a comprehensive understanding of the content and dimensions of corporate tax responsibility (CTR) and discussing further developments in research and action.

Design/methodology/approach

The study builds on a systematic literature review of 117 theoretical and empirical papers on tax within the broad field of CSR published in peer-reviewed academic journals and books.

Findings

The analysis unfolds and discusses the construct of CTR and proposes a unified conceptualisation that elucidates for what firms are (or should be) held accountable on tax matters and the different dimensions (i.e. instrumental, political, integrative and ethical) which justify greater tax responsibility and enable its achievement.

Practical implications

The results can provide companies with practical guidance to enhance their tax responsibility and can give stakeholders and policymakers suggestions for new mobilisation strategies to achieve more responsible tax behaviour.

Social implications

Corporate tax payments are a fundamental dimension of CSR, as they fund public goods and services and reduce the unequal distribution of wealth. Providing a more structured understanding of CTR, this paper can contribute towards attaining more responsible tax outcomes which can better serve and benefit the whole society.

Originality/value

This study offers a structured overview of the present state of tax research in CSR, while providing a comprehensive understanding and conceptualisation of the construct of CTR, thus enabling scholars to situate their work and develop further relevant research in this field.

Details

Sustainability Accounting, Management and Policy Journal, vol. 14 no. 7
Type: Research Article
ISSN: 2040-8021

Keywords

Available. Open Access. Open Access
Article
Publication date: 8 March 2024

Hilda Du Plooy, Francesco Tommasi, Andrea Furlan, Federica Nenna, Luciano Gamberini, Andrea Ceschi and Riccardo Sartori

Following the imperative for human-centric digital innovation brought by the paradigm of Industry 5.0, the article aims to integrate the dispersed and multi-disciplinary…

1331

Abstract

Purpose

Following the imperative for human-centric digital innovation brought by the paradigm of Industry 5.0, the article aims to integrate the dispersed and multi-disciplinary literature on individual risks for workers to define, explain and predict individual risks related to Industry 4.0 technologies.

Design/methodology/approach

The paper follows the question, “What is the current knowledge and evidence base concerning risks related to Industry 4.0 technologies, and how can this inform digital innovation management in the manufacturing sector through the lens of the Industry 5.0 paradigm?” and uses the method of systematic literature review to identify and discuss potential risks for individuals associated with digital innovation. N = 51 contributions met the inclusion criteria.

Findings

The literature review indicates dominant trends and significant gaps in understanding risks from a human-centric perspective. The paper identifies individual risks, their interplay with different technologies and their antecedents at the social, organizational and individual levels. Despite this, the paper shows how the literature concentrates in studying risks on only a limited number of categories and/or concepts. Moreover, there is a lack of consensus in the theoretical and conceptual frameworks. The paper concludes by illustrating an initial understanding of digital innovation via a human-centered perspective on psychological risks.

Practical implications

Findings yield practical implications. In investing in the adoption, generation or recombination of new digital technologies in organizations, the paper recommends managers ensure to prevent risks at the individual level. Accordingly, the study’s findings can be used as a common starting point for extending the repertoire of managerial practices and interventions and realizing human-centric innovation.

Originality/value

Following the paradigm of Industry 5.0, the paper offers a holistic view of risks that incorporates the central role of the worker as crucial to the success of digital innovation. This human-centric perspective serves to inform the managerial field about important factors in risk management that can result in more effective targeted interventions in risk mitigation approaches. Lastly, it can serve to reinterpret digital innovation management and propose future avenues of research on risk.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Available. Open Access. Open Access
Article
Publication date: 26 November 2019

Irenius Dwinanto Bimo, Christianus Yudi Prasetyo and Caecilia Atmini Susilandari

The purpose of this paper is to analyze the effect of internal control on tax avoidance analyzing internal (family ownership) and external (environmental uncertainty) factors on…

16869

Abstract

Purpose

The purpose of this paper is to analyze the effect of internal control on tax avoidance analyzing internal (family ownership) and external (environmental uncertainty) factors on the effectiveness of internal control in preventing tax avoidance.

Design/methodology/approach

First, the authors examine the direct effect of the effectiveness of internal control on tax avoidance. Second, the authors examine the effect of moderation of family ownership and environmental uncertainty on the relationship of the effectiveness of internal control on tax avoidance. Third, the authors divide the full sample into two groups, high and less effectiveness of internal control to examine the direct effect of internal control effectiveness on tax avoidance and when considering moderating variables. Fourth, the authors use two different measures of the effectiveness of internal control.

Findings

This research found that effective internal control can reduce tax avoidance. Family ownership affects the relationship between internal control and tax avoidance, but environmental uncertainty does not influence the relationship between internal control and tax avoidance.

Practical implications

Internal control increases compliance with rules and policies, so companies must design and implement effective internal control to prevent tax avoidance activities in violation of tax regulations.

Originality/value

In contrast to previous studies, this study measures the effectiveness of internal control using the index of internal control practice disclosure and considers internal and external factors that can affect the effectiveness of internal control to prevent tax avoidance.

Details

Journal of Economics and Development, vol. 21 no. 2
Type: Research Article
ISSN: 2632-5330

Keywords

Available. Open Access. Open Access
Article
Publication date: 26 December 2024

Mohsen Rashidi

The purpose of this research is to review the dividend smoothing effectiveness from the perspective of managers' overconfidence and accounting competence. Accounting competence is…

58

Abstract

Purpose

The purpose of this research is to review the dividend smoothing effectiveness from the perspective of managers' overconfidence and accounting competence. Accounting competence is considered as an important factor in recognizing management’s ability to override internal controls as an opportunity to distort financial reports.

Design/methodology/approach

The current study applies multivariable linear regression method estimator to investigate the relationship between Overconfidence, Managerial Accounting Competence and Dividend Smoothing of 1,320 firm-year observations in Iran for the period of 2012–2022.

Findings

The result show that manager overconfidence leads to dividend smoothing. Moreover, this relation is stronger in low information quality and not driven by high information quality or by others measures. This research show that accounting competence has led to positive change in the efficiency of the manager performance and reduce the self-interesting motives of manager.

Practical implications

In the present study, the weaknesses caused by the ambiguity of capital market efficiency in market performance-based statistical models are compensated and partially covered by classifying the relationships and implementing models in each group. Results obtained from this study will aid market practitioners to evaluate the firms’ dividend smoothing. The results provide evidence and information for policymakers and investors about the theoretical gap and the factors affecting to it. It also informs policymakers to the dividend smoothing associated with the manager characteristics.

Originality/value

The previous researches emphasize on limiting agency costs by creating limits for the optimistic actions of managers, while framing and standardizing a major part of management behaviors is not possible. In this research, the manager’s executive ability has been examined in the form of accounting competence at the same time as excessive self-confidence, in order to control part of the inherent limitations caused by the managers' behavior. This study also considers the positive aspect of managers' ability in the form of accounting competence.

Details

Review of Economics and Political Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2356-9980

Keywords

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