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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.

This research investigates the effect of imposing a tax on sugar-sweetened beverages (SSBs) on the likelihood of purchasing SSBs. We design and test an experimental framework that examines this and the effects of providing an explanation about the presence of an SSB tax and information about the negative health effects of consuming SSBs. Consistent with Elbel, Taksler, Mijanovich, Abrams, and Dixon (2013) and Taylor, Kaplan, Villas-Boas, and Jung (2019), we find that imposing a tax, in addition to increasing the conspicuousness of the tax by explaining the presence of a tax (and in some cases, the negative health effects) reduces the likelihood of purchasing an SSB anywhere from 8.39% to 18.15%. We contribute to the public health and tax policy literature by testing consumer choice in a controlled experimental setting and considering the effect of individual differences on the choice to purchase SSBs. Imposing a tax on SSBs may be an effective tool for decreasing SSB consumption that is made more effective when the tax is conspicuous.

We conduct an experiment asking participants to choose to purchase either a traditional or hybrid car to examine how federal-state conformity of tax incentives impacts the decisions of taxpayers. We also examine perceptions of taxpayers surrounding federal-state conformity. Consistent with theory related to the effects of information environment and using an experiment in which taxpayers are asked to evaluate tax incentives related to a purchase decision between a traditional and hybrid car, we find that conformity is a significant factor in increasing the propensity to take advantage of the tax incentive. Specifically, we find that participants with simple and conforming federal-state incentives are more likely to take advantage of the tax incentive than with complex and conforming federal-state incentives. In addition, the effects of conformity between federal and state incentives suggest that participant perceptions of the federal system were heavily influenced by the actions of the state.

The purpose of this chapter is to serve as a resource for accounting faculty seeking tax-related cases to include in their courses. This annotated bibliography provides a table and discussion of 50 educational tax cases published in six major accounting journals from 2003 to 2021. Cases are classified and discussed by recommended course placement. In addition, the authors make observations about trends in case content and format. This chapter complements the Fogarty (2022) review and commentary on tax cases published in this volume.

In this chapter, we discuss teaching physical education to Black male students in urban schools. We present a brief account of the history and status of physical education and specifically examine school physical education, particularly for Black male students in urban geographical contexts. We also offer strategies to counter the narrative of Black male school failure and present strategies for addressing the needs of urban teachers and Black male students.