Hopland, Arnt O.; Lisowsky, Petro; Mardan, Mohammed; … - 2021
This study develops theory and discusses implications of inflexibility in tax-motivated income shifting. We show that … inflexibility to adjust income-shifting strategies within a tax year in response to losses implies that income-shifting incentives … income shifting. We propose several empirical remedies to mitigate the estimation bias stemming from inflexibility, whenever a …