Using tax return data to simulate corporate marginal tax rates

By John R. Graham, Lillian F. Mills. 2008

209 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/b406619d5597879031bc887b807b67044a4cf867

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Citations in the corpus

Tax Rates and Corporate Decision Making (2017, methodology): “…those in which the dependent variable measures future incremental investing and financing choices (see Graham, Lemmon, and Schallheim, 1998; Graham and Mills, 2008). β1 is predicted to be positive in equation 1: larger values of MTR – GAAP ETR lead firms that use the ETR to underestimate…”
Does Political Corruption Impede Firm Innovation? Evidence from the United States (2019, background): “Source: Graham and Mills (2008).”
Investment Incentives and Corporate Tax Asymmetries (2010, unknown): “Proponents of prior measures claim, however, that these variables do quite well in measuring taxable status when compared with actual tax returns (Plesko (2003), Graham and Mills (2008)).”
Customer-Supplier Relationships and Corporate Tax Avoidance (2017, background): “MTR Simulated marginal tax rate after interest expense deduction, defined as the present value of taxes on an additional dollar of income (Graham and Mills, 2008).”
The Economic Determinants of Conditional Conservatism (2009, unknown): “As a sensitivity test we use an alternative proxy for the marginal tax rate developed by Graham (1996) and Graham and Mills (2008).”
Agency Problems of Corporate Philanthropy (2015, methodology): “To measure corporate tax rate, we define the marginal tax rate following Graham and Mills (2008).9 Also, since there is no cross-sectional variation in CEO personal taxes, we must rely on time-series variation arising from regulatory changes to evaluate the impact of personal tax on corporate…”
The effect of financial leverage on real and accrual-based earnings management (2017, methodology): “We would like to thank Professor John Graham (Graham 1996a, b, Graham and Mills 2008, http:// faculty.fuqua.duke.edu/~jgraham/) for providing us with the data on MTR. 11.”
Audit Quality and the Trade-Off between Accretive Stock Repurchases and Accrual-Based Earnings Management (2012, methodology): “…a firm’s average interest rate to the incremental funds borrowed.7 We convert the estimated forgone dollar return into an after-tax amount using Graham and Mills’ (2008) simulated marginal tax rates, which are highly correlated with marginal rates based on actual tax returns.8 We calculate…”
Firm Age, Corporate Governance, and Capital Structure Choices (2018, unknown): “These estimates are based on the methodology detailed in Graham and Mills (2008).”
The Evolution of Capital Structure and Operating Performance after Leveraged Buyouts: Evidence from U.S. Corporate Tax Returns (2014, background): “7 Various authors compare financial data to tax return data to estimate tax payments (Lisowsky, 2009), simulated marginal tax rates (Graham and Mills, 2008), or book-tax differences (Manzon and Plesko, 2002).”
Capital Structure Choice and Company Taxation: A Meta-Study (2013, unknown): “Graham (1996b) and Graham and Mills (2008) document that the simulated marginal tax rate indeed is the best available proxy for the unobserved true marginal tax rate.”
Why are firms unlevered (2012, unknown): “However, Graham and Mills (2008) conclude that their simulated book-MTRs are highly correlated with MTRs based on tax return data, suggesting that they are reasonably good proxies for the MTRs that may be used by managers in their decision-making.”
As Certain as Debt and Taxes: Estimating the Tax Sensitivity of Leverage from State Tax Changes (2015, unknown): “Missing values are filled in as recommended in Graham and Mills (2008).”