We make use of details of advanced tax rulings (ATRs) provided by the Luxembourg Tax Inspector to multinational firms and examine how the types and attributes of ATRs affect tax planning outcomes. We find that ATR firms realize lower GAAP ETRs than control firms. Tax savings achieved by ATR...

This study examines whether corporate tax planning and financial reporting of income taxes vary systematically with CEO tenure. Using a CEO-firm fixed effects design, we find that the GAAP effective tax rate (ETR) is higher in the early years of the CEOs' tenure and lowest in the last year of...

We examine the association between aggressive tax planning and labor investment efficiency among a sample of publicly listed U.S. firms. Labor is an important input to production that is material to many firms. Inefficient labor investments can have a considerable effect on future profitability...

This study examines the impact of auditors’ exposure to PCAOB inspection on their clients’ tax planning effectiveness. PCAOB inspections commonly scrutinize the auditing of income taxes. We posit that auditors’ tax-related knowledge increased in response to the onset of this scrutiny and...