Search results

Research readings groups represent a recent innovation in accounting doctoral education that appears to be spreading at research-oriented universities. In this chapter, the authors describe how accounting research readings groups can serve as a mechanism to engage doctoral students in the consumption and discussion of research throughout all phases of the doctoral program. An accounting research readings group supplements the breadth of knowledge gained in doctoral seminars by adding depth of knowledge in a focal research area. The authors offer insights from the educational psychology literature to justify research readings groups as a form of team-based learning and then offer suggestions on the formation and operation of these groups. The authors enumerate the many benefits that these groups afford to both doctoral students and faculty members. The authors also distribute a survey to faculty organizers of the existing accounting research readings groups and share the results of this survey to supplement their advice with firsthand experiences, the authors also share the results of a survey distributed to faculty organizers of existing accounting research readings groups. The authors’ goal is to encourage the use of accounting research readings groups to inspire, foster, and enhance the research culture within accounting departments and doctoral programs.

This study examines how creditor interventions after debt covenant violations affect corporate tax avoidance. Using a regression discontinuity design, we find that creditor interventions increase borrowers' tax avoidance. This effect is concentrated among firms with weaker shareholder governance before creditor interventions and among those with less bargaining power during subsequent debt renegotiations. Our results indicate that creditors play an active role in shaping corporate tax policy outside of bankruptcy.

This study examines short selling as one external determinant of corporate tax avoidance. Prior research suggests that short sellers have information advantages over retail investors, and high short-interest levels are a bearish signal of targeted stock prices. As a result, when short-interest levels are high, managers have been shown to take actions to minimize the negative effect of high short interest on firms’ stock prices. Tax-avoidance activities may convey a signal of bad news (i.e., high stock price crash risk). We predict that, when short-interest levels are high, managers possess incentives to reduce firm tax avoidance in order to reduce the associated stock price crash risk. Consistent with this prediction, we find that short interest is negatively associated with subsequent tax-avoidance levels. This effect is incremental to other factors identified by prior research. We conclude that short selling significantly constrains corporate tax avoidance.

We investigate the interaction of debt covenants and tax accounting on the adoption of Financial Interpretation No. 48 (FIN 48). We examine how firms respond to the potential tightening of covenant slack upon FIN 48 adoption and whether these actions are penalized by creditors and anticipated by equity markets. We find that upon FIN 48 adoption, the majority of sample corporate borrowers increase their tax reserves and reduce equity. Firms close to debt covenant violation were even more likely to increase tax reserves upon FIN 48 adoption; however, the size of the adjustment was relatively smaller, suggesting that the FIN 48 standards limited, but did not eliminate, firms use of discretion in reporting uncertain tax positions to avoid costly covenant violations. For firms near net worth debt covenant violation, the act of decreasing equity upon FIN 48 adoption imposes real economic costs, as the average cost of debt increased by 43 basis points. Finally, we extend prior research on the market response to FIN 48 by showing how the market response to FIN 48 adoption is a function of debt covenant slack and tax aggressiveness. Specifically, the cumulative abnormal return at the FIN 48 exposure draft release date is negative only for tax aggressive firms that are close to debt covenant violation.

Purpose – I extend the discourse regarding The Days of Wine and Roses (TDoWaR) as an Alcoholics Anonymous (A.A.) film in particular and analyses of A.A. films in general and provide a symbolic interactionist reading of TDoWaR as involving compliance dramas.

Design/methodology/approach – Borrowing from Norman Denzin's notion of a subversive reading of films, in which the author attends to the literal content of a text from a predefined perspective, I deal with the characters as if they create and maintain aligned and congruent actions that authors can analyze as conversational and interactional content. My main interest, drawing upon symbolic interactionist conceptualization and previous reviews of TDoWaR, involves the decisions made by characters to imbibe against their better judgment.

Findings – I detected four dramas (foreshadowed, evocative, profane, and complementary) that differed in interactional intensity and consequences. Each involves mutual decision making associated with self-definition and definition of the relationships. I also locate the dramas in the context of moral themes of an A. A. Film, specifically an epiphany, a categorical commitment to sobriety, an ongoing life cycle of recovery, and synchronicity.

Originality/value – Compliance dramas involve decisions to engage in ordinary activity (in this case, drinking) that becomes nonordinary, owing to semiotic, situational, historical, and interactional dynamics. The chapter can encourage thinking about alcoholism and alcoholic films as involving a moral career of a recovering alcoholic that sometimes must involve sacrifice of other prestigious moral careers (e.g., of a romantic relationship) in order to maintain the authenticity of the identity.

Based on an ethnographic study of a restaurant called the “Hungry Cowboy,” I examine how servers make use of sexual harassment claims within a sexually overt work culture. Focusing on the dynamics of a specific case, I explore how participation in sexual talk and touch provides positive rewards for some workers, operating as a source of craft pride, while laying the groundwork for exclusion of other workers. This study reveals how intersectionality plays out in the day-to-day behaviors and practices that make up workplace cultures, how white workers use a gendered tool to filter racism, the intentional manipulation of workplace culture by workers, and the unintended outcomes of sexual harassment laws.