Disclosure of corporate tax reports, tax enforcement and insider trading
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- dc.contributor.author Caballé, Jordica
- dc.contributor.author Dumitrescu, Ariadnaca
- dc.date.accessioned 2016-09-15T13:18:21Z
- dc.date.available 2016-09-15T13:18:21Z
- dc.date.issued 2016-09-15
- dc.description.abstract In this paper, we analyze the effects of disclosing corporate tax reports on the performance of financial markets and the use of asset prices by the tax enforcement agency in order to infer the true corporate cash flows. We model the interaction between a firm and the tax auditing agency,/nand highlight the role played by the tax report as a public signal used by the market dealer and the role of prices as a signal used by the tax authority. We discuss the determinants of both the reporting strategy of the firm and the auditing policy of the tax authority. Our model suggests that, despite disclosure of the tax reports being beneficial for market performance (as the spreads and trading costs are smaller than under no disclosure), the tax agency might have incentives to not disclose the tax report when its objective is to maximize expected net tax collection.ca
- dc.description.sponsorship The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
- dc.format.mimetype application/pdfca
- dc.identifier.uri http://hdl.handle.net/10230/27298
- dc.language.iso engca
- dc.relation.ispartofseries ADEMU Working Paper Series;26
- dc.relation.projectID info:eu-repo/grantAgreement/EC/H2020/649396
- dc.rights This is an Open Access article distributed under the terms of the Creative Commons Attribution License Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution and reproduction in any medium provided that the original work is properlyattributed.ca
- dc.rights.accessRights info:eu-repo/semantics/openAccessca
- dc.rights.uri https://creativecommons.org/licenses/by/4.0/ca
- dc.subject.keyword Disclosure
- dc.subject.keyword Corporate tax
- dc.subject.keyword Insider trading
- dc.title Disclosure of corporate tax reports, tax enforcement and insider tradingca
- dc.type info:eu-repo/semantics/workingPaperca