Finally, I find that the respective relationships between BOOK_ETR and an ITF or IHTE characteristics are moderated by certain types of AC expertise.
In response, accounting researchers have sought to understand factors that drive corporate tax avoidance.
While historical research has focused on firm characteristics, little emphasis has been placed on the executive who develops corporate tax strategy.
Findings – Backdating firms tend to be younger and faster growing – the characteristics of firms with growing demand for skilled labor.
Further, rather than experiencing poor performance, backdating firms tend to outperform matching firms in both prior- and post-backdating years.
Originality/value – The results suggest that backdating reflects a firm's demand for valuable employees rather than strictly a manifestation of agency problems, as evidenced by previous study.
ABSTRACT: Allegations of tax abuse at Enron, World Com, and others generated scrutiny from regulators, public markets, and the media.
I find that CEOs are more likely to receive equity during negotiations when they negotiate for the target, particularly when the target has more bargaining power.
This suggests that boards use equity to enhance bargaining incentives for CEOs with the most influence over deal price.
ABSTRACT: Purpose – The purpose of this paper is to provide evidence in support of incentive and retention-based explanations for backdating.