Permanently Reinvested Foreign Earnings, Taxes, and Earnings Management

By Linda K. Krull. 2004

184 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/d93b6fa92bd80aa5b270cda45a36e5410cd9433b

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Citations in the corpus

Why Do Firms Hold So Much Cash? A Tax-Based Explanation (2007, unknown): “Krull (2004) uses hand collected The Compustat data do not provide detailed information about where multinationals have foreign operations, but they do include information about the levels of foreign income taxes paid and foreign pretax income.”
Investment and Capital Constraints: Repatriations Under the American Jobs Creation Act (2012, unknown): “15 It makes sense that the explanatory power of PRE should be greater, because firms are more likely to classify foreign earnings as permanently reinvested abroad if the foreign tax rate is low (Collins, Hand, and Shackelford 2001; Krull 2004).”
Conforming Tax Avoidance and Capital Market Pressure (2019, unknown): “, income tax reserves or valuation allowances) to manage earnings and thus meet or beat an earnings benchmark (Dhaliwal, Gleason, and Mills 2004; Krull 2004; Schrand and Wong 2003; Frank and Rego 2006; Cazier, Rego, Tian, and Wilson 2015).”
GDP management to meet or beat growth targets (2018, unknown): “Subsequent studies find that discontinuity in earnings distribution can be attributed to unusual accounting treatments in accounts that are likely related to earnings management, such as bad debt allowance, discontinued operations, loan loss provisions, marketing and advertising expenses, restructur”
Credit Ratings and Taxes: The Effect of Book–Tax Differences on Ratings Changes (2008, methodology): “rates are used to manage earnings (e.g., Dhaliwal et al. 2004; Krull 2004).”
Taxable Income, Future Earnings, and Equity Values (2004, background): “…past earnings, report positive earnings, or meet analysts' forecasts ) by reducing the valuation allowance for the deferred tax asset (e.g., Schrand and Wong 2003; Burgstahler et al. 2002; Frank and Rego 2003), or by designating foreign subsidiary earnings as "permanently reinvested" (Krull 2004).”
Governance and Taxes: Evidence from Regression Discontinuity (2016, unknown): “Further, there is plentiful evidence on the use of taxes to manage earnings in order to meet earnings benchmarks (Dhaliwal et al. 2004; Krull 2004; Schrand and Wong 2003; Frank and Rego 2006); this suggests that at least some aspects of tax strategy can be changed relatively quickly in response to c”
Bringing it Home: A Study of the Incentives Surrounding the Repatriation of Foreign Earnings Under the American Jobs Creation Act of 2004 (2009, methodology): “We include ROE to control for profitability, which creates variability in dividends (Lintner 1956). Consistent with Dittmar (2000) and Core et al.”
A review of tax research (2010, unknown): “Krull (2004) finds that managers use discretion in the designation of permanently reinvested earnings (PRE) to manage reported earnings to meet analyst forecasts but not other targets.”
Real Effects of Accounting Rules: Evidence from Multinational Firms’ Investment Location and Profit Repatriation Decisions (2010, unknown): “14 Another related study is Krull (2004), who examines whether firms designate earnings as permanently reinvested in an attempt to manage earnings to meet analysts’ forecasts.”