We examine how investors value tax avoidance (measured as the level of cash ETRs) and tax risk (measured as the volatility of cash ETRs), and how these constructs interact to influence firm value. Our results suggest that investors positively value tax avoidance but negatively value tax risk...

We explore the trade-off between managerial risk-taking incentives and firm-level credit risk. Assuming that risk-taking incentives do not increase firm value, risk-taking incentives can lead to an asset substitution problem that hurts creditors. However, it is possible that risk-taking...

We examine the effect of foreign employment on two outcomes—income shifting and the tax uncertainty of foreign transactions. Using a hand-collected sample of employment disclosures, we partition our sample into firm-years with a higher or lower degree of foreign employment. Using two distinct...