التفاصيل البيبلوغرافية
| العنوان: |
The Impact of Book-Tax Conformity on Reporting and Investment Behavior |
| المؤلفون: |
Lilge, Alexandra |
| المساهمون: |
Peters, Michelle (VerfasserIn); Reineke, Rebecca (VerfasserIn) |
| المصدر: |
2023 |
| الناشر: |
[S.l.]: SSRN |
| اللغة: |
English |
| نوع الوثيقة: |
Elektronische Ressource im Fernzugriff |
| Manifestation: |
Monographie [unabhängig ob Stück einer Reihe] |
| مستخلص: |
We examine whether higher book-tax conformity and its effects on firms’ investment and tax reporting decisions decrease misleading tax reporting and increase tax revenue. In contrast to previous studies, we incorporate an investment decision into a strategic tax-compliance model. In the model, a firm decides on an investment that affects the cash flows shown in its financial statement. The firm subsequently files a tax report that is either compliant or misleading. After observing both reports, the tax authority decides whether to audit the firm. As book-tax conformity links both reports, the financial statement provides information regarding the tax report’s accuracy for the tax audit. Our analysis identifies the mixed strategy equilibrium and shows that higher book-tax conformity induces more (less) misleading tax reporting if the firm’s investments are high (low). We also show that investments decrease in response to higher book-tax conformity. Moreover, we find that that higher book-tax conformity either increases or decreases tax revenue and after-tax profits |
| DOI: |
10.2139/ssrn.4323441 |
| رقم الأكسشن: |
EDSZBW1845233182 |
| قاعدة البيانات: |
ECONIS |
