Search results

This paper aims to examine the relationship between corporate social responsibility (CSR) and tax avoidance as well as how CSR and country-level governance interplay in affecting tax avoidance in an international setting.

This paper is an empirical work using listed companies from 35 countries and relying on several proxies for corporate tax avoidance activities including the difference between the statutory tax rate and the annual effective tax rate, the book-tax difference and the residual book-tax difference.

This study finds strong evidence that CSR is positively related to tax avoidance. It also finds that in countries with weak country-level governance, firms with higher CSR scores engage in less tax avoidance, implying that CSR and country-level governance are substitutes.

This paper is the first study that examines the relationship between CSR and tax avoidance in an international setting with different legal and institutional environment.

The purpose of this paper is to examine corporate social responsibility (CSR) activities in Canadian family firms.

This paper is an empirical work using a sample of Canadian listed companies for eight years between 2010 and 2017.

Relying on five measures for CSR, this paper finds that, compared with other listed firms, family listed firms have a higher level of CSR engagement. Further tests show that family-named family firms engage in more CSR activities; family firms with second largest shareholders engage in more CSR activities; and family firms affiliated with large business groups engage in more CSR activities. However, family firms whose family members are CEOs, presidents or board chairpersons engage in less CSR engagement.

This paper contributes to the current CSR literature by highlighting the importance of family firm heterogeneity in shaping a firm’s CSR practices. It focuses on four characteristics of Canadian family firms that are potentially connected to CSR, namely, family-named family firms; family firms with family members being CEOs, presidents or chairpersons; family firms with second largest shareholders and family firms affiliated with large business groups.

This paper aims to examine the design of optimal incentives for a firm’s tax department in the presence of information asymmetry.

This paper provides a theoretical model to examine the design of optimal incentives. The focus is on a situation in which a risk-averse tax department has private information about its efficiency type or effort to be exerted before the firm sets the incentive schemes.

This paper shows that a tax department’s risk aversion leads to a decline in the fraction of the cost borne by the tax department. It also shows that the optimal contract schemes should be designed to filter out as much uncontrollable risk as possible by using third-party information relevant to a tax department’s realized cost.

It contributes to a better understanding of the impact of corporate incentive plans on firms’ tax practices. This study, by designing a theoretical model, helps explain why there exist differences in tax planning across firms based on the finding that incentives for tax planning activities differ across firms.

This paper is the first study that considers the situation in which tax managers’ risk-averse and types, as well as relevant information collected by the firms, can be used to set up incentive schemes and investigates whether and how the incentive schemes will be affected when firms improve their prior information by acquiring relevant information before the tax department acts.

This paper aims to examine the precision loss of ball screw raceway under different operating conditions and geometry parameters.

Based on a new coefficient K’ introduced especially for ball screws to reflect the actual contact condition, the modified Archard theory is applied to ball screws to obtain wear volume of the ball-screw contacts. Thus, the axial precision loss can be defined as the ratio of the wear volume to the contact area. Meanwhile, a novel running bench and a precision-measuring system of ball screws are conducted. Precision variation is obtained and analyzed during the whole life running test, which agrees well with the theoretical values calculated in this paper.

For a given rotational speed, the increasing rate of the precision loss rate is high at low axial load and then becomes small with the increasing axial load, whereas for a given axial load, the precision loss rate is proportional to the rotational speed. Besides, the precision loss rate is reduced with the increasing contact angle between a ball and the screw raceway, and is proportional to the helix angle when the angle changes from 1 to 10 degrees.

The rotational speed used in this experiment is low and the ball screw is of no-load type, although results calculated by the model and Wei’s model seem close when the axial load is high, whether the model built in the paper is applicable to the condition of high rotational speed and preload still needs to be verified in the future work.

This study provides an accurate model to predict the precision loss of the screw raceway and estimate the remaining life of ball screws, which is significant for better performance of ball screws as well as the computer numerical control machine tools.

Previous studies on the wear of ball screws mainly focused on the drag torque analysis and mechanical efficiency estimation, and the experiment to verify their theoretical analysis was almost all limited to the test of drag torque or axial rigidity, which is neither sufficient nor persuasive. However, in this paper, the authors proposed a comprehensive wear prediction model which combines the modified Archard wear theory, Hertz contact theory and kinematic theory of ball screws. To the best of the authors’ knowledge, this kind of study has never been reported in the literature. In addition, for the lack of the test bench and high cost of the experiment, the whole life operation test, which is designed and conducted to confirm the model in this paper, has never been reported in literature either.

The purpose of this paper is to examine the impact of country-level governance and accounting standards on corporate tax avoidance.

This paper is an empirical work using a sample of listed companies from 36 countries.

This paper finds that firms resident in countries with stronger country-level governance engage in less tax avoidance. Aspects of stronger country-level governance include higher government effectiveness and regulatory quality, and stronger enforcement of law and control of corruption. This paper also finds that firms adopting international accounting standards (IFRS) engage in less tax avoidance than those using local accounting standards. Further examination of the effect of interactions between country-level governance and the adoption of IFRS on tax avoidance finds that there is a substitute relationship between country-level governance and the adoption of IFRS.

This study has significant implications for policy makers, corporate management and academics. It documents that when a country implements governance targeting improving government effectiveness, enhancing regulatory quality, strengthening enforcement of laws and controlling corruption, this will lead to less corporate tax avoidance. It also shows that the adoption of IFRS will reduce corporate tax avoidance, probably by enhancing accounting quality and disclosure, and that the adoption of IFRS provides a bond mechanism in reducing tax avoidance in countries with weak governance.

This paper is the first study to examine the impact of country-level governance on tax avoidance at the corporate level. It is also the first study to examine how country-level governance interplays with IFRS in shaping firms’ tax avoidance activities.

This paper aims to examine the relationship between pyramid ownership structure and tax avoidance.

This paper is an empirical work using a sample of Canadian listed firms.

Relying on several proxies for tax avoidance, the authors find that firms affiliated with pyramidal structures generally engage in more tax avoidance activities than non-affiliated firms; firms affiliated with more complex pyramids engage in more tax avoidance practices and firms located at the lower tiers of the pyramids avoid more taxes; and some pyramid-affiliated firms with larger deviation between controlling shareholders’ cash flow rights and control rights engage in more tax avoidance practices.

A broader understanding of the relationship between pyramidal structure and tax avoidance can be pursued by including firms in other countries, where the pyramid groups (pyramid structure) are prevalent, but institutional environments differ from that of Canada.

This study highlights the importance of pyramid ownership in shaping tax avoidance activities among Canadian-listed firms. Canada provides an ideal setting for studying the impact of ownership structure, as it contains a diverse corporate ownership structure ranging from widely held freestanding firms to pyramidal business groups.

Unlike firms listed in the USA, many large firms in Canada belong to business groups organized as pyramids. A pyramidal structure refers to a business group that consists of a set of enterprises or other entities and displays a top-down chain of control. The purpose of this paper is to investigate the relationship between pyramid ownership and earnings management.

The paper is an empirical study using a sample of 165 Canadian listed firms from 2010 to 2015. The impact of pyramid ownership on both accrual-based and real earnings management is examined.

The findings show that pyramid-affiliated firms engage in less accrual-based and real earnings management than non-pyramid-affiliated firms. The results further show that the divergence between control rights and cash flow rights of the controlling shareholders in the pyramid-affiliated firms is positively related to real earnings management. Moreover, the results highlight that intra-group transactions (other than internal financing) among pyramid-affiliated firms lead to higher level of both accrual-based and real earnings management, but internal financing is negatively associated with real earnings management. Overall, this study provides the evidence which indicates that pyramid ownership structure and earnings management are related to each other.

The paper contributes to the earnings management literature by studying the impact of pyramid ownership structure on earnings management, especially real earnings management.

The purpose of this paper is to explore the impact of information acquisition for the purpose of differentiating agencies operating in different localities on the design of optimal funding.

This paper is a theoretical study. The focus is on a situation in which agencies providing public services have perfect private information about their cost conditions before the government sets the formula for funding.

The authors show that, using a free signal correlated with costs of operation to differentiate agencies situated in different localities, the government can achieve better welfare for households across regions. However, when there exist non-negligible costs involved in the differentiating process, it may pay to acquire information only if the signal acquired is informative enough, i.e., the correlation between the signal and the agencies’ true cost conditions is strong enough.

This paper is of interest to academics and policy makers. Acquiring information for tagging can be viewed as a preliminary screening process. Different types are then endowed with distinctly different incentives to control the costs of operating their agencies. Specifically, when the observed cost signal and the true cost conditions of agencies are positively correlated, the government should optimally be more aggressive in distorting the high-cost type’s effort decision by giving less incentive for the low-cost type agencies to cut costs than in the no-differentiation case, and vice versa.

This paper is the first study that explores the impact of information acquisition on the design of optimal funding for public service agencies.

The purpose of this paper is to examine the effect of institutional environment and inside ownership on the tax reporting practices of Chinese listed firms.

It is an empirical study using a sample of Chinese listed firms for eight years of time periods between 1998 and 2005.

This study finds that in Chinese provinces with more developed institutions, firms have higher effective tax rates; however, firms with inside ownership in these regions have lower effective tax rates. Further analysis shows that the above results hold only for non‐state‐owned firms.

The paper presents the first study of the impact of inside ownership and institutional environment on corporate effective tax rate in China.

Vector Autoregression (VAR) has been a standard empirical tool used in macroeconomics and finance. In this paper we discuss how to compare alternative VAR models after they are estimated by Bayesian MCMC methods. In particular we apply a robust version of deviance information criterion (RDIC) recently developed in Li, Zeng, and Yu (2014b) to determine the best candidate model. RDIC is a better information criterion than the widely used deviance information criterion (DIC) when latent variables are involved in candidate models. Empirical analysis using US data shows that the optimal model selected by RDIC can be different from that by DIC.