Findings on Accounting Detailed by Investigators at University of Oregon (Expected Economic Growth and Investment In Corporate Tax Planning)

2021 AUG 19 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Data detailed on Accounting have been presented. According to news reporting out of Eugene, Oregon, by NewsRx editors, research stated, “This study investigates whether expected economic growth is associated with investment in corporate tax planning. We predict that higher expected economic growth increases the net present value of tax planning opportunities and that thus firms’ investment in tax planning will be higher in periods when expectations about economic growth are optimistic.”

Financial supporters for this research include Mays Business School, Ernst & Young Professorship.

Our news journalists obtained a quote from the research from the University of Oregon, “Consistent with expectations, we find that changes in fees for auditor-provided tax services are positively associated with GDP growth forecasts after controlling for known determinants of tax avoidance. Using path analysis, we find that expected macroeconomic growth influences firms’ investment in tax planning directly, rather than indirectly through other investments. Cross-sectional analyses show this association is more pronounced for firms that are financially constrained and those that are more likely to experience a change in tax status.”

According to the news editors, the research concluded: “Our study highlights that growth expectations at the macroeconomic level are an important determinant of time-series variation in firm’s investment in corporate tax planning.”

This research has been peer-reviewed.

For more information on this research see: Expected Economic Growth and Investment In Corporate Tax Planning. Review of Accounting Studies, 2021. Review of Accounting Studies can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer - www.springer.com; Review of Accounting Studies - http://www.springerlink.com/content/1380-6653/)

Our news journalists report that additional information may be obtained by contacting Ryan Wilson, University of Oregon, Lundquist College of Business, Eugene, OR 97403, United States. Additional authors for this research include Jaewoo Kim, Sean McGuire and Steven Savoy.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s11142-021-09625-5. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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