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Krull (2004) finds that US multinational corporations (MNCs) increase amounts designated as permanently reinvested earnings (PRE) to maximize reported after-tax earnings and meet earnings targets. We extend this research by examining the relationship between executive equity compensation and the opportunistic use of PRE by US MNCs, and the market reaction to earnings management using PRE designations. Firms use equity compensation to incentivize executives to strive for maximum shareholder wealth. One unintended consequence is that executives may engage in earnings management activities to increase their equity compensation. In this study, we examine whether the equity incentives of management are associated with an increased use of PRE. We predict and find strong evidence that the changes in PRE are positively associated with the portion of top managers' compensation that is tied to stock performance. In addition, we find this relationship to be strongest for firms that meet or beat forecasts, but only with the use of PRE to inflate income, suggesting that equity compensation incentivizes managers to opportunistically use PRE, especially to meet analyst forecasts.

Further, we provide evidence that investors react negatively to beating analysts' forecasts with the use of PRE, suggesting that investors find this behavior opportunistic and not fully convincing. This chapter makes an important contribution to what we know about the joint effects of tax policy, generally accepted accounting principles, and incentive compensation on the earnings reporting process.

We examine the relationship between tax-related accounting misstatements and changes in the uncertain tax benefits accrual account in the year of the disclosure of a misstatement. We find that the disclosure of a tax-related misstatement is associated with an increase in unrecognized tax benefits during that year. We show that the increase in unrecognized tax benefits in the year of disclosure is from uncertain tax positions taken in prior periods. Overall, this finding is consistent with increase in financial reporting conservatism upon disclosure of tax-related accounting misstatement.

I examine patterns of making or deferring strategic repatriations that firms can use to either meet analysts' forecasts or defer to maintain future reported earnings flexibility. First, I examine the extent to which firms repatriate earnings from high foreign tax subsidiaries to decrease US tax expense, resulting in increased net income and lower cash taxes. Using federal tax return information, I find evidence that firms strategically repatriate these earnings to meet or beat current analysts' forecasts. Next, I find evidence that firms that are able to obtain current year tax reductions defer these repatriations in an attempt to build cookie-jar reserves. Lastly, I find that firms do not disclose high foreign tax repatriations (HTRs), even when required by SEC rules. This study contributes to the earnings management, tax avoidance, and disclosure literature by examining a discretionary tax planning strategy.

The implications arising from the underrepresentation of women and inequality of female participation in leadership and senior management positions continues to challenge many sectors of the economy and transportation, including commercial aviation. Although concerted efforts have been made to introduce initiatives encouraging women into senior leadership roles, change is slow and women remain underrepresented on Senior Management Teams (SMTs) and the Executive Committees of commercial airlines and airports. Globally, and prior to the COVID pandemic, only 3 per cent of airline CEOs were women whilst women held 8 per cent of airline CFO posts and 3 per cent of COO posts (Silk, 2019).

Air transport’s apparent inability to recruit and retain women in top leadership positions poses a serious challenge to the sector and the global economy as a whole. This chapter argues that lack of gender diversity will inevitably hinder the expansion of the sector and pose a significant challenge by failing to capitalise on the skill set of women. The aim of this chapter is to examine women’s representation and progression within the UK aviation sector with a particular focus on airports.

The purpose of this chapter is to overview what extant research says about parental involvement in online learning environments.

The approach in this chapter is a systematic review of literature focusing on engagement frameworks.

Parents have the potential to be the key to overcoming key concerns about attrition and achievement in online settings. However, research has been silent as to how to engage parents more fully as learning coaches for their children.

Research about parental involvement in online learning should consider the roles of both teacher and parent as they coordinate their efforts to improve student engagement. Research also needs to look at what parents need to know about helping their students be successful and how to provide the training and expertise to parents that will help them learn critical support skills.

This chapter is particularly timely in light of the dramatic growth in online learning and the resulting concerns about achievement and attrition that are particularly acute among at-risk populations.

In this chapter we analyze how the designation of foreign earnings as “permanently reinvested” outside the US (PRE) is related to subsequent firm growth and market returns. Prior research suggests that firms that hold excess cash in foreign markets to avoid the US corporate income tax experience lower growth, since such “trapped” cash is inefficiently invested. However, foreign earnings can be inefficiently invested in forms other than cash. We hypothesize and find that as the ratio of PRE to total assets increases, firms' growth rates decline. Our results suggest that trapped earnings, and not just trapped cash, are associated with lower growth. Because PRE have also been associated with earnings management in the literature, we further analyze the association between the use of PRE to meet or beat earnings targets and subsequent growth, observing a significant and persistent negative association. Finally, we note that the market discount for PRE, and especially for the use of PRE to manage earnings, appears to be relatively small. Our results provide support for FASB's stated plans to increase disclosure requirements surrounding the tax accrual.