Keywords
value relevance, cax surprise, taxation, tax enforcement, international
Abstract
Despite evidence that tax surprise is incrementally value relevant, the literature has done little to broaden the investigation beyond the United States or examine circumstances that affect informativeness. After extending to the international setting, I examine the impact of tax enforcement. I report strong results of greater value relevance when tax enforcement is high and that the value relevance of tax surprise is mostly contained within its interaction with tax enforcement. These findings highlight the importance of tax enforcement in determining the information content of tax surprise and suggest that extant and future discussions should be broadened to include it.
Original Publication Citation
"The Value Relevance of Taxes: International Evidence on the Proxy for Profitability Role of Tax Surprise", Journal of Accounting & Economics, 2019
BYU ScholarsArchive Citation
Kerr, Jon, "The Value Relevance of Taxes: International Evidence on the Proxy for Profitability Role of Tax Surprise" (2019). Faculty Publications. 8478.
https://scholarsarchive.byu.edu/facpub/8478
Document Type
Peer-Reviewed Article
Publication Date
2019
Publisher
Journal of Accounting and Economics
Language
English
College
Marriott School of Business
Department
Accountancy
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