51 research outputs found
The value of apology: Apologies impact on stock returns
No full textIn a crisis managers are confronted with a dilemma between an ethical responsibility to respond to victims and their fiduciary responsibility to protect shareholder’s wealth. This study provides empirical evidence that a company apology made during a crisis can have a positive or negative effect on stock price depending on the level of responsibility for a crisis born by the firm. We use Coombs’ (2007) Situational Crisis Communication Theory to classify crises and appropriate re-sponse type for 235 unique crises between 1983 and 2013. We use event study methodology to study the effect of an apology on returns. The results show that managers apologizing to those affected for a victim or accidental crisis jeopardize shareholder wealth; however offering an apology for a preventable crisis offsets this negative effect
How do tax and accounting policies affect cross-border mergers and acquisitions?
No full textUsing a large sample of mergers and acquisitions from 27 countries over a 16-year period, I investigate how differences in tax and financial reporting policies affect the premium and structure of cross-border mergers and acquisitions. I find evidence that firms pay a premium to reduce the tax risk associated with strict transfer pricing rules. Further analysis segments acquisitions into those that are strictly financial versus those that are more strategic. Financial acquisitions are those where the acquirer is making the purchase for investment purposes rather than strategic reasons. These financial transactions generally lead to less integration between the two companies and therefore less inter-company transactions involving transfer pricing. Evidence based on this segmentation suggests that only differences in transfer pricing risk for non-financial acquisitions are priced. The results suggest that while on average non-financial acquirers will pay a higher premium to reduce transfer pricing risk regardless of industry, only those in highly scrutinized industries with high levels of intangibles, such as pharmaceuticals, will demand a discount for transactions which increase transfer pricing risk.
In tests of acquisition structure, I find that shareholder-level capital gain taxes influence the structure of an acquisition. The influence of shareholder-level taxes is reduced by the presence of information asymmetry concerning the acquirer’s stock value. However, higher quality financial reporting reduces information asymmetry and improves the tax efficiency of acquisition structure providing tangible economic benefit to shareholders
Transfer pricing: strategies, practices, and tax minimization
No full textUsing a survey of tax executives from multinational corporations, we document that some firms set their transfer pricing strategy to minimize tax payments, but more firms focus on tax compliance. We estimate that a firm focusing on minimizing taxes has a GAAP effective tax rate that is 6.6 percentage points lower and generates about $43 million more in tax savings, on average, than a firm focusing on tax compliance. Available COMPUSTAT data on sample firms confirm our survey‐based inferences. We also find that transfer pricing‐related tax savings are greater when higher foreign income, tax haven use, and R&D activities are combined with a tax minimization strategy. Finally, compliance‐focused firms report lower FIN 48 tax reserves than tax‐minimizing firms, consistent with the former group using less uncertain transfer pricing arrangements. Collectively, our study provides direct evidence that multinational firms have differing internal priorities for transfer pricing, and that these differences are strongly related to the taxes reported by these firms.First author draf
How Does Transfer Pricing Risk Affect Premiums in Cross-Border Mergers and Acquisitions?
No full textThe Role of Auditors, Non-Auditors, and Internal Tax Departments in Corporate Tax Aggressiveness
No full textWhat's the problem?: Studies on identifying usability problems in user tests
No full textDuring the process of developing products difficulties in use (usability problems) are hard to predict. This especially holds for interactive products with embedded software. In user tests conducted during the design process analysts try to foresee which problems people will run into when using a product. Once they have identified and understood the problems, product developers may attempt to redesign the product so that the risk of users encountering usability problems will be minimized. Extracting usability problems from observed user behavior in a consistent manner has proven to be very difficult. Not only is it difficult for analysts to analyze all observations in the same way (this is called within-analyst consistency) but different analysts also tend to uncover different usability problems (across-analyst consistency). Within-consistency can be at stake when analysts become tired, less attentive or distracted during the analysis. Across-analyst consistency may also concern issues like differences in analysts' beliefs, values or preferences. In this thesis the focus is at consistency in identifying usability problems in user tests. The DEVAN (DEtailed Video ANalysis) procedure was developed to make such analyses documentable and inspectable. Next, DEVAN and its simplified variant SlimDEVAN were used in an academic setting and in a setting of professional usability labs. The aim was to determine to what extent (Slim)DEVAN exposes possible sources of inconsistency and manages to reduce inconsistencies caused by fatigue, lack of vigilance and distraction. In addition, DEVAN was applied to a comparative study in which the effect of using prototypes (instead of functioning products) in user tests is studied in detail. The thesis demonstrates how user test data analyses suffer from persistent inconsistencies. The use of (Slim)DEVAN allowed for detecting causes of persistent inconsistencies. In the comparative study the use of DEVAN revealed effects of using prototypes in user tests. For reducing less persistent inconsistencies advanced (automated) observation tools and more precise problem criteria are proposed. We suggest that further research should focus on consequences of inconsistencies in actual product development contexts. Eventually this will lead to more insight into the quality aspects of user tests, which in turn may lead to a decrease in the number of users muttering: "What's the problem? Why does this thing not do what I want it to do?"Industrial Design Engineerin
Modeling employment outcome post brain injury resource facilitation
No full textDisability following traumatic brain injury (TBI) can impact community integration as well as employment post injury. Considering the impact unemployment can have on quality of life, recovery, and the economy, several targeted interventions have been identified in the literature. One successful evidence-based intervention is called resource facilitation (RF). RF is an intervention targeted at improving employment rates in the TBI community with resulting return to work rates well above established return to work rates published in the brain injury population. Even with the success of RF, variability in outcome in a concern. Identification of variables that contribute to positive or negative employment outcomes could help target at-risk patients earlier in the treatment protocol and influence clinical recommendations during treatment. This project was designed to identify the complex relationship between predictor variables and return to work after participation in the RF program. Although many models exist currently in the literature, none of the published models are appropriate for the RF population. Additionally, currently published models typically involve linear regression models making the relationships between predictor variables difficult to detect. Structural equation modeling (SEM) was used to test the variables identified in the literature and identify direct and indirect predictors of outcome. SEM allows for direct testing of mediating variables as well as proposed latent variables within one prediction model. A preliminary model based on theoretical considerations as well as empirical evidence was used as a starting point. Although the initially hypothesized model was not an appropriate fit for the current dataset, two statistically sound models were generated during post hoc testing. Upon successfully identifying the two prediction models, results indicate that brain injury survivors with childhood injuries cannot be modeled in the same sample as brain injury survivors injured as adults, suggesting a difference between rehabilitation patients and “habilitation” patients.Ph.D.Includes bibliographical referencesby Devan Parrot
Privacy Issues and the Paparazzi
No full textIn order to understand the current statutes and their implication for privacy issues, Part I explores the history of the paparazzi and their invasion into the lives and privacy of celebrities as a safety concern. Part II reviews the history of both California Penal Code 11414 and California Civil Code 1708.8. Part III examines the text of California Penal Code 11414 and California Civil Code 1708.7, 1708.8, and 1708.9, as amended by the three bills. Part IV analyzes how the statutes as amended interact with the common law torts of intrusion and trespass and discusses how the statutes interact with the common law defenses of assumption of risk and waiver. Part V compares the current version of the California privacy statutes and how they compare to the developments taken in other states and countries. Part VI concludes the paper with a brief analysis of potential First Amendment arguments against the statute.
This abstract has been taken from the author\u27s introduction
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Privacy Issues and the Paparazzi
No full textIn order to understand the current statutes and their implication for privacy issues, Part I explores the history of the paparazzi and their invasion into the lives and privacy of celebrities as a safety concern. Part II reviews the history of both California Penal Code 11414 and California Civil Code 1708.8. Part III examines the text of California Penal Code 11414 and California Civil Code 1708.7, 1708.8, and 1708.9, as amended by the three bills. Part IV analyzes how the statutes as amended interact with the common law torts of intrusion and trespass and discusses how the statutes interact with the common law defenses of assumption of risk and waiver. Part V compares the current version of the California privacy statutes and how they compare to the developments taken in other states and countries. Part VI concludes the paper with a brief analysis of potential First Amendment arguments against the statute.
This abstract has been taken from the author\u27s introduction
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