This study examines the impact of control systems on corporate innovation. Innovation is key to firm performance and growth, allowing corporations to stay competitive in their industry. We expect control systems to improve information flows within the firm by allowing managers to better identify...

We investigate whether firms use pretax cash flow freed-up by tax avoidance to make real investments. We expect uncertainty about tax avoidance to affect how this cash is used, and predict that firms facing low (high) financial constraints will use more of this cash for real investments...

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...

While tax avoidance strategies result in greater after-tax cash flows, they can involve uncertain future outcomes, which can impose significant costs on firms. Thus, the extent to which tax avoidance increases firm risk is unclear. This paper re-examines the relation between tax avoidance and...

Increasing workplace diversity is a key component of the social pillar of environmental, social, and governance (ESG) activities. In this study, we use financial statement disclosures to identify firms that claim the Work Opportunity Tax Credit (WOTC), a federal tax program that incentivizes...

Economic theory has long argued that when risk-averse investors are price-takers, a tax on risky returns (with full tax benefit for losses) will cause investments in risky assets to increase because the tax reduces after-tax risk. We extend this result to a setting with a fixed supply of risky...

This study documents a spillover effect of accounting fraud by showing that after the revelation of accounting misconduct there is an increase in financially motivated neighborhood crime (robberies, thefts, etc.) in the cities where these misconduct firms are located. We find that more visible...