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The authors study the shareholder wealth effects of the adoption and subsequent litigation confirming the validity of shareholder right plans that are enacted to protect a firm’s net operating loss (NOL) carry forwards (tax benefit preservation plans (TBPPs)). The purpose of this paper is to expand the understanding of nontraditional shareholder rights plans, which are becoming increasingly more common.

This paper considers abnormal returns around TBPP adoptions and Delaware Court rulings that validated their use. The authors study 118 plans adopted between 1998 and 2011. Abnormal returns are measured using both a market model and a performance-matched sample.

The authors find that abnormal returns are negative at the announcement of a new TBPP. However, the full impact of plan adoption on share prices is not evident until the Delaware Courts validated their use. The Delaware Court rulings in the case of Selectica, Inc. v. Versata Enterprises, Inc. and Trilogy, Inc. are associated with additional negative wealth effects for both prior plan adopters and the firms most likely to consider adopting a plan. These results suggest that entrenchment concerns tend to outweigh the protection of NOL carry forwards when firms adopt TBPPs.

This study was the first to consider the adoption of TBPPs. Currently, it is the only study that considers Delaware Court rulings related to these plans, which allows us to successfully disentangle the entrenchment hypothesis from the potential alternative hypothesis that the negative announcement period returns are driven by investors updating their expectations for firm performance.

The purpose of this study is to examine the relationship of using derivative financial instruments, tax aggressiveness and firm market value.

This paper develops analytical models and designs an empirical study.

Using data from large Canadian public companies, this paper finds that a firm’s realized losses or unrealized gains from using derivatives are negatively associated with its effective tax rate, and a firm’s realized losses or unrealized gains from using derivatives are positively associated with its market value.

This study simplifies the analytical model by separating the firm’s intrinsic market value from the tax-timing option value. In a more general framework, the tax-timing option value could be subsumed in the firm’s market value, and the firm’s market value would be determined endogenously.

This study develops a framework to show how firms exploit the tax-timing option by using derivatives. It is the first study to conclude that a motive for firms to use derivatives is to exploit the tax-timing option.

The purpose of this paper is to offer a critical and broad perspective on how transnational companies (TNCs) behave in the global context, focussing its attention on the controversial issue of tax avoidance in the UK. It pursues this aim by taking into account not only economic globalisation, mobility of capital and tax havens but also ethics and corporate social responsibility.

This paper seeks to provide an interdisciplinary viewpoint drawing not only from well-established scholarly literature but also from real cases and evidence, such as the scandals involving corporate giants, such as Starbucks, Google and Amazon in the UK.

This paper highlights the fundamental interplay and mutual aid of ethics and international laws, underlining the increasing importance of corporate social responsibility principles in today’s business practices. However, it also emphasises the need of reinforcing these principles with either regional or universalistic legal approaches to tackle TNCs’ misconduct in the international arena.

This paper suggests that by establishing and enforcing international business laws, increasingly aligned with ethical principles, the gap between ethics and legislation can be consistently bridged. Hence, TNCs’ behaviour could be more efficiently controlled.

The paper contributes to the literature on modern economic globalisation by providing a comprehensive and integrative perspective on TNCs’ behaviour, accounting for the interplay of socio-ethical, legal and business principles.

The dominant theorisation of the informal economy views participants as rational economic actors operating in the informal economy when the expected benefits exceed the perceived costs of being caught and punished. Recently, an alternative theory has emerged which views participants as social actors operating in the informal economy due to their lack of vertical trust (in governments) and horizontal trust (in others). The aim of this paper is to evaluate these competing theorisations.

To do so, data are reported from special Eurobarometer surveys conducted in 2007, 2013 and 2019 in eight West European countries (Austria, Belgium, France, Germany, Ireland, Luxembourg, the Netherlands and the United Kingdom).

Using probit regression analysis, the finding is that increasing the expected likelihood of being caught and level of punishment had a weak significant impact on the likelihood of participating in the informal economy in 2007, and there was no significant impact in 2013 and 2019. However, greater vertical and horizontal trust is significantly associated with a lower level of participation in the informal economy in all three time periods.

The outcome is a call for a policy to shift away from increasing the expected level of punishment and likelihood of being caught, and towards improving vertical and horizontal trust. How this can be achieved is explored.

Evidence is provided in a Western European context to support a shift away from a rational economic actor to a social actor approach when explaining and tackling the informal economy.

This study investigates the impact of different transfer pricing rules on tax-induced profit shifting. Existing studies create different enforcement rankings of countries based on specific transfer pricing provisions on the assumption that larger penalties and more extensive information requirements imply higher tax enforcement. This assumption carries limitations related to the impact of transfer pricing rules in different countries and to the interaction of different tax rules. Instead, the authors propose a nonordered segregation of groups of countries with different transfer pricing rules, and they empirically investigate the impact of these transfer pricing rules on the profit-shifting behavior of firms.

The authors apply the hierarchical clustering method to analyze 57 observable quantitative and qualitative characteristics of transfer pricing rules of each country. This approach allows the creation of groups of countries based on a comprehensive set of regulatory characteristics, to investigate evidence of profit shifting for each of these separate groups. Profit-shifting behavior is measured by the variation in the volume of import and export transactions between local firms and related parties located in other countries.

The results indicate that firms have a higher volume of intrafirm transactions with related parties located in countries with a lower tax rate. This result is consistent with the profit-shifting hypothesis. Moreover, the results show that relevant differences in transfer pricing rules across countries produce different effects on the volume of intrafirm transactions. The authors observe that the existence of domestic transfer pricing rules that override the OECD Transfer Pricing Guidelines may inhibit profit shifting. In addition, the results suggest that the OECD guidelines may facilitate profit shifting. Overall, it is observed that some transfer pricing rules may be more effective than others in curbing profit shifting and that firms are still able to manipulate transfer prices under some tax rules.

(1) The authors focus on the Brazilian context, which provides a suitable set of profit-shifting incentives for the analysis, since it combines an extreme corporate tax rate, a highly complex tax system, and a unique set of transfer pricing rules. (2) Profit-shifting behavior is captured by the volume of intrafirm transactions. The authors would prefer to observe the transfer price directly; however, this information is not disclosed by firms, for it may represent a limitation to the investigation. Nonetheless, theory shows that the profit-shifting behavior is reflected by the manipulation of both transfer prices and intra-firm outputs.

The authors find that the volume of intrafirm transactions may decrease or increase, depending on the transfer pricing system of the foreign country (including the tax-differential effect). It suggests that some transfer pricing rules are more effective than others in curtailing the profit-shifting behavior and that firms are still able to find vulnerabilities in current rules and take advantage of them in deploying a profit-shifting strategy.

Results provide knowledge about how key differences on transfer pricing rules across countries influence the profit-shifting behavior. The results of the study may have valuable application in solving regulatory mismatches, to eliminate blind spots in transfer pricing rules and thus to contribute to the current review of OECD guidelines and to the global tax reset movement.

Recent studies suggest that if tax-avoidance incentives are somewhat weak, it becomes difficult to observe the shifting behavior of firms. The puzzle is to check whether profit shifting is nonexistent under weak incentives or whether this is a matter of methodological limitations. The authors’ analysis is applied to a complex tax background with strong profit-shifting incentives; thus, it allows the authors to obtain robust evidences of the shifting behavior and the effect of different transfer pricing rules.

On‐line computer control of book circulation is being developed at the Queen's University of Belfast. The desire for ease of integration with the existing system and flexibility for future automation of the ordering and cataloguing routines has led to the adoption of a manual typing form of input and the retention of the existing book numbers. This paper discusses the computer processing necessary before book numbers can be sorted to obtain alphabetically and numerically, ordered, lists as computer output suitable for librarian or reader use.

Companies often conduct general Employee Opinion Surveys (EOSs) to measure some features or outcomes of an organization. Converting data to results is routine and governed by the design of the EOS and the use of standard statistical methods. However, as one moves away from results to their meanings or conclusions, and from conclusions to recommendations, other factors and variables come into play. These factors and variables are governed more by the context, the presence of constraints, the intuition of the decision makers, and the actions by engaged agents. Essentially EOSs produce ambiguous conclusions and recommendations because they are “knobless,” or lacking underlying processes which are controllable by management. The theory of the organizational hologram has evolved operationally into a family of Organizational Diagnostic Survey (ODS) forms which generate sets of results representing managerially controllable processes or combinations of processes. That is, the ODS provides a set of x‐axis variables that can be employed to explain variability in EOS results, which are viewed as dependent variables plotted on the y‐axis. Every item in an ODS form is “knobby.” The relationships among the questions and higher order results are causal and structured with known interdependencies. Combining ODS and EOS allows knobby analyses of knobless survey items.

Adwest Group Limited Stand s.P.40. Companies exhibiting:

The purpose of this study is for examining the evolution of stakeholder influence and the trans-period effect (TPE) of process performance of public–private partnerships (PPPs). TPE refers to the ripple effect of project performance across different phases of a PPP.

Social network analysis is used to analyze each stakeholder’s influence on PPP performance. For examining the TPE, partial least squares structural equation modelling is conducted.

The performance in the five phases (e.g. initiation and planning, procurement, construction, operation and transition) of PPPs exhibits significant TPE. The stakeholder network varies in different phases. The most influential stakeholder is a public authority, followed by a public initiator and a private consortium.

The project type of PPPs is not considered in the stakeholder network analysis. Future work should focus on developing a multidimensional stakeholder network by considering the typology of the project. Moreover, the TPE cannot reflect the relationships between the KPIs in the different phases, and thus, further study is required.

This research provides a useful tool for measuring the life cycle outputs and outcomes of PPPs through enhanced process-oriented performance measurement. The developed PMS enable practitioners to have a better understanding of the process performance of the projects and then ensure informed decision-making about actions to be required and taken to improve future performance.

This study contributes to knowledge of performance management by simultaneously addressing the process and stakeholder management theories within the context of PPPs. The proposed PMS provides an insight into managing stakeholders’ influences to enhance the life cycle performance of PPPs.