Accounting for Contingencies

, 32

Accounting for Income Taxes (SFAS109)

, 32

Accounting for Uncertainty in Income Taxes

, 30

AFE. See Analysts’ forecast error (AFE)

Alternative measures of short interest

, 18

American Citizens Abroad Global Foundation

, 92

American Citizens Abroad organization

, 94

American citizens live abroad

, 96–97

American General Social Survey

, 178

American Institute of Certified Public Accountants

, 92

American Stock Exchange

, 10

Analysts’ forecast error (AFE)

, 34

Antagonistic tax climate

, 153

ASSETS

, 66

AUDI

, 130–131

Audit-based detection probability

, 123–124

Bangladesh, large taxpayers in

, 121

Baseline regression results

, 130–131

Black economy

, 185

Book-to-market ratio (BTM)

, 9

Bootstrapping

, 167–168

BTM. See Book-to-market ratio (BTM)

CAPEX. See Capital expenditures (CAPEX)

Capital expenditures (CAPEX)

, 9

Cash effective tax rate (CETR)

, 7

CASHFLOW

, 66

Cash flow from operations (CFO)

, 9

CASH HOLDING

, 66

CETR. See Cash effective tax rate (CETR)

CFA. See Confirmatory factor analysis (CFA)

CFO. See Cash flow from operations (CFO)

Change in earnings per share (DEPS)

, 34

Chief Tax Court judge

, 79

Chi-square results

, 83–84

Closely held corporation

, 74

Coercion, in tax compliance

, 121–126

Complex tax-avoidance transactions

, 18

Compliance behavior

, 148

Compliance structural model

, 160

Conditional cooperation

, 152–153, 163, 176

Confirmation of mediator

, 157

Confirmatory factor analysis (CFA)

, 157

measurement model

, 160

Corporate sector

, 121–126

Corporate tax avoidance, determinants of

, 4–5

Correlation matrix

, 40

of selected variables

, 62

Corrupt tax administration

, 124

Crossover analysis

, 44–47

Cross-sectional analysis

, 16–18

CRPROS

, 130, 134

Deferred tax asset valuation allowance (DTVA)

data and results

crossover analysis

, 44–47

regression analysis

, 37–44

sample selection and descriptive statistics

, 36–37

research method

one-stage approach

, 33–36

two-stage approach

, 36

Dependent variable

, 85, 156

Depreciation tax shields (PP&E)

, 9

Deterrence power coerces taxpayers

, 151

Devastating consequences of Greek economic/debt crises

, 179–181

Disclosure requirements

, 92

Disclosure transparency

, 18–23

Discretionary accruals

, 9

Discretionary permanent book-tax differences (DTAX)

, 7–8

DIVDUM

, 66

Dividend

received deduction

, 54

regression of

, 63, 64, 65

smoothing

, 57

taxation

, 54–55

tax legislation

, 58

Double taxation

, 76

Downward dividend rigidity

, 57

DTAX. See Discretionary permanent book-tax differences (DTAX)

Earnings

, 59

Earnings management (EM)

, 30

analysis of

, 45

tests

, 41–42

Earnings per share (EPS)

, 34

Economic crisis

, 173

Economic/risk-based theories

, 123

Effective tax rates (ETRs)

, 2

Electronic FinCEN Form

, 114, 93

EM. See Earnings management (EM)

Empirical model

, 8–9

“Employment Package,”

, 174

Enforced tax compliance

, 148, 151

model

, 157–161, 162

EPS. See Earnings per share (EPS)

ETRs. See Effective tax rates (ETRs)

European and World Values Surveys

, 178

European Commission’s Investment Plan for Europe

, 173–174

EUT. See Expected utility theory (EUT)

Existing literature

, 6

Expectancy theory

, 123

Expected utility theory (EUT)

, 123

Factors inherent

, 9

FASB Interpretation No. 48 (FIN48)

, 30

FATCA. See Foreign Account Tax Compliance Act (FATCA)

FBAR. See Foreign Bank and Financial Accounts (FBAR)

FEMALE

, 105

FILCOM variable

, 130–131

Financial Industry Regulatory Authority (FINRA)

, 8

Financial package

, 74

Financial reporting quality factors

, 9

FINRA. See Financial Industry Regulatory Authority (FINRA)

Firm characteristics, descriptive statistics of

, 60

FORECAST_ERROR

, 21

FOREIGN

, 9

Foreign Account Tax Compliance Act (FATCA)

, 92, 93

Foreign Bank and Financial Accounts (FBAR)

, 92

Foreign-controlled manufacturing corporations

, 122

Foreign-earned income exclusion

, 92

Foreign tax credit

, 92

Foreign tax reporting rules

, 109

Form 10-K

, 18

Former General Secretariat for Public Revenue

, 184

Fortune magazine

, 5

Fundamental economic theory

, 92

GAAP effective tax rate (GETR)

, 2–3, 7

GDP. See Gross domestic product (GDP)

GETR. See GAAP effective tax rate (GETR)

GFI. See Goodness-of-fit index (GFI)

Global financial crisis

, 173

GOF. See Goodness-of-fit (GOF)

Good fiscal policy

, 92

Goodness-of-fit (GOF)

, 157

Goodness-of-fit index (GFI)

, 157

Greek shadow economy

, 183

Gross domestic product (GDP)

, 59, 179

High stock option convexity

, 5

Hiring Incentives to Restore Employment Act (P.L. 111-147)

, 93

Housing provisions

, 92

Hypothesis development

, 6–7, 55–57, 150–155

Imprisoning taxpayers

, 124

Income tax-based earnings management

, 31

Independent Authority for Public Revenue in Greece

, 184

Independent variables

, 81, 156

Indicator variable for foreign income

, 9

Industry sector

, 122

INDUSTRY_SI

, 14

Information imperfections/deviations

, 176

Inland Revenue Board (IRB)

, 149

Institutional ownership as percent of shares outstanding (INST_OWN)

, 9

Instrumental variable (IV)

, 3

Intentions theory

, 124

Internal Revenue Code (IRC) Section

, 162, 74–75

Internal Revenue Service (IRS)

, 4, 74, 93

Intrinsic motivation

, 175

IRB. See Inland Revenue Board (IRB)

IRC. See Internal Revenue Code (IRC)

IRS. See Internal Revenue Service (IRS)

IV. See Instrumental variable (IV)

JGTRRA. See US Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) of 2003

US Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) of 2003

, 53

legislation

, 54

Judge’s political affiliation

, 79

Juncker Plan

, 173–174

Justifications

, 156

Large accelerated filers

, 18

Large taxpayer units (LTUs)

, 121

Legal precedence

, 74, 76

Legitimate power

, 151

LEV. See Leverage (LEV)

Leverage (LEV)

, 9

Logarithm of total assets (LOG_AT)

, 9

LOG_AT. See Logarithm of total assets (LOG_AT)

Long-run cultural factors

, 176

long-term cash effective tax rates

, 4

LTUs. See Large taxpayer units (LTUs)

Managers, of scrutinized firms

, 6

Manufacturing firms

, 122

Marginal taxpayers

, 125

McNemar tests results

, 192

Measurement model

, 158, 159

Measuring tax avoidance

, 7–8

Mediating effect

, 157–161

“Most admired companies,”

, 5

Multilevel regression results

, 131–134

Multiple regression results

, 85–86, 132–133

MUNDER

, 130–131

NASDAQ Stock Market

, 10

Natural logarithm of the number of analysts following firm (N_ANALYSTS)

, 9

Negative stock market reaction

, 5

NET_EFFECT _t

, 46–47

Net operating loss carryforwards (DNOL)

, 9

New York Stock Exchange

, 10

Noncompliance behaviors

, 148

Nonresponse bias

, 126

Nonrisk theories of tax compliance

, 124

OCF. See Operating cash flow (OCF)

OECD. See Organization for Economic Cooperation and Development (OECD)

OLS. See Ordinary least squares (OLS)

Operating cash flow (OCF)

, 58

Ordinary least squares (OLS)

, 10

Organization for Economic Cooperation and Development (OECD)

, 54, 125

PAYCOM

, 134

Peer effects

, 176

PENAL variable

, 130–131

Performance-adjusted modified Jones model (DIS_ACCRUAL)

, 9

Persuasion, in tax compliance

, 121–126

PI. See Pretax income (PI)

Political affiliation

, 78

Post-FIN48 period

, 30

Post-Jobs and Growth Tax Relief Reconciliation Act of 2003

, 53

POSTTAX

, 58, 67

Potential tax savings

, 18

PP&E. See Depreciation tax shields (PP&E)

Predicted value (PRED_SI)

, 14

Pre-FIN48 period

, 30

Pre-Jobs and Growth Tax Relief Reconciliation Act of 2003

, 53

Premanaged analysts’ forecast error (PMAFE _t )

, 34

Premanaged change in earnings per share (PMΔEPS _t )

, 36

Premanaged earnings per share (PMEPS _t )

, 36

Pretax cash flow from operations

, 9

Pretax income (PI)

, 7

Prospect theory

, 123

Questionnaires

, 156–157

Quota sampling method

, 156

R&D. See Research and development expense (R&D)

Reasonable compensation

, 74

“Reasonable compensation,”

, 79

Reciprocity

, 153, 176

Regression analysis

, 37–44

REPCOM

, 131

Reputation costs

, 4

Research and development expense (R&D)

, 9

Respondents

age ranges

, 95

citizenship status and gender

, 96

comments on impact of FATCA

, 101–102

country of residence

, 95

length of time lived abroad

, 98

marital status

, 96

planned duration for living abroad

, 98

tax evasion in United States and in their country of residence

, 100

Retail investors

, 5

Return on assets (ROA)

, 9

“Ringmastering,”

, 122

Risk-based theories

, 123

ROA. See Return on assets (ROA)

Robustness tests

, 43–44

alternative measures of short interest

, 18

disclosure transparency

, 18–23

Run After Tax Evaders program

, 124

Sales growth (SALES_GROWTH)

, 9

Sarbanes–Oxley Act

, 33

SAS. See Self-assessment system (SAS)

SEC. See Securities and Exchange Commission (SEC)

“Sectorization,”

, 122

Securities and Exchange Commission (SEC)

, 5

Self-assessment system (SAS)

, 148

Sensitivity test

, 66–67

Shadow economy

in general

, 174

in Greece

, 175–185

Shareholder-level dividend tax policy

, 52

SHELTER

, 7–8

SHORT_INTEREST

, 10, 21

Short-interest variable

, 3

Short sellers

, 5–6

Short-selling

, 5–6

activities

, 8–9

curbs

earnings management

, 6

tax avoidance

, 3

SIC codes. See Standard Industrial Classification (SIC) codes

Simple regression results

, 84

Slippery slope framework

, 149, 176

Social influences

, 176

Special items (SPI)

, 7

SPI. See Special items (SPI)

Standalone approach

, 120

Standard Industrial Classification (SIC) codes

, 8

Statement of Financial Accounting Standards No. 5

, 32

Statement of Financial Accounting Standards No. 109

, 32

Statutory tax rate

, 4

Tax

accounting literature

, 1

administration in Malaysia

, 149

aggregates/collection, in Greece

, 184–185

amnesties

, 185

amoral behavior

, 154

authority monitoring

, 4

awareness

, 154

compliance

, 148

administrations

, 120

coercion and persuasion in

, 121–126

instruments

, 120

nonrisk theories of

, 124

Court judges

, 79

cushion changes

, 47

deferral strategies

, 7

evasion, impact on

, 175–178

moral

, 155

concept of

, 175–178

in Greece

, 175–185

measuring

, 178–179

planning opportunities

, 9

shelter arrangements

, 2

shelter prediction score

, 7

simplification

, 125

Taxes paid (TXPD)

, 7

Taxpayer service

, 125

THALES project

, 187–188

Thomson Reuters Institutional (13f) Holdings file

, 10

TIME_ABROAD

, 105

Total tax expense (TXT)

, 7

Treasury Regulations

, 75–76

Treasury stock purchase (TREASURY)

, 61

TSERVICE

, 130–131

TSIMPLI

, 130–131

2SLS. See Two-stage least squares (2SLS) model

Two-stage least squares (2SLS) model

, 2, 14–16

TXPD. See Taxes paid (TXPD)

TXT. See Total tax expense (TXT)

Unregistered economic activities

, 182

Untabulated analysis of open-ended responses

, 110

US

tax court judges, characteristics of

, 79

tax court makeup based on political affiliation and gender

, 81

tax law

, 106

taxpayers

, 93

tax system

, 92

in general

, 99

treasury department

, 93

Treasury Regulations 1.162-7

, 75–76

Variables

correlation matrix of selected

, 62

definitions

, 35

dependent

, 85

descriptive statistics for

, 38–39

equation 1 and 2

, 83

FILCOM

, 130

frequencies of four demographic

, 190

independent

, 82

measurement

, 9

measurement of dependent (outcome) and independent (predictor)

, 129

PENAL

, 130

Variance–covariance matrix (VCE)

, 134

VCE. See Variance-covariance matrix (VCE)

Voluntary tax compliance

, 148

Web-based approach

, 94

Wilcoxon Signed-ranks tests results

, 192–193