This paper provides additional evidence on earnings management via the deferred tax asset valuation allowance account (VAA). Earlier publications that do not find evidence of earnings management via the VAA examine contractual incentives using broad samples. A more recent publication finds...

We investigate the association between aggressive tax and financial reporting and find a strong, positive relation. Our results suggest that insufficient costs exist to offset financial and tax reporting incentives, such that nonconformity between financial accounting standards and tax law...

We document evidence that mutual funds designated as “Sustainable Investment Overall” by Morningstar (which we classify as ESG mutual funds) are no more likely than other mutual funds to support shareholder proposals. We find, however, that ESG mutual funds are more likely than non-ESG...

This technical note provides additional information with regards to the tax consequences of employee stock options and can be used in conjuction with UVA-C-2155. Specifically, the note provides information about the disqualification of incentive stock options (ISOs), the alternative minimum tax...

We exploit changes in a country's integration of corporate and shareholder taxes to identify the effect of investor-level taxes on costly corporate tax avoidance. Specifically, we rely on European countries eliminating imputation systems in different years in response to supranational judicial...

This technical note outlines the differences between financial accounting standards and tax law that affect the valuation of potential targets depending on the deal structure employed. Valuation models typically rely on financial accounting information to estimate the value of the deal; but tax...

This case asks students to identify and evaluate the merits of two factors that have led a buy-side analyst to conclude that an acquiring company is a high-risk investment: (1) the company's allocation of acquisition proceeds and (2) the quality of the target's intellectual-property (IP)...

We examine the role of political affiliation during the selection of Opportunity Zones, a place-based tax incentive enacted by the Tax Cuts and Jobs Act of 2017. We find governors are on average 7.6% more likely to select a census tract as an Opportunity Zone when the tract's state...

In September 2005, after years of bitter competition, Siebel Systems Inc. finally agreed to be acquired by Oracle Corporation. The two companies preferred different forms of consideration as payment for Siebel Systems and used a deal structure known as a double dummy to satisfy both parties. The...

This technical note provides the design for a case-method course called Taxation and Management Decisions taught in Darden's MBA program. The course is a general management course, and is designed specifically to exclude mergers and acquisitions, which are taught in another elective. While the...