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Record W2258269503

Book-Tax Consolidation, Rates of Return, and Capital Structure

2007· article· en· W2258269503 on OpenAlexaff
William B. Trautman

Bibliographic record

VenueSSRN Electronic Journal · 2007
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicCorporate Taxation and Avoidance
Canadian institutionsQuest University Canada
Fundersnot available
KeywordsBusinessMonetary economicsDeferred taxReturn on equityTax rateFinancial statementFinanceEconomicsAccountingState income taxTax reformProfitability indexPublic economicsGross incomeAudit
DOInot available

Abstract

fetched live from OpenAlex

This study finds a strong relationship at the firm level between differences in the rates of return reported for the financial and tax consolidated groups on one hand and differences in tax return and financial statement capital structure measures on the other. In particular, after controlling for size, profitability, global character (domestic or multinational), industry, and the lack of eliminating entries for intercompany transactions, the authors find that the more the rate of return for the financial group exceeds the rate of return for the tax group, the more the tax measures of leverage, debt, interest, and assets exceed financial measures for the same items. Their results, they note, are consistent with several explanations, including the use of special purpose entities, hybrid financing arrangements, state tax reporting, deconsolidating from worldwide to U.S. reporting, transfer pricing, and the foreign tax credit limitation. The results are also consistent with the premise that taxpayers may be taking advantage of differences in the financial and tax consolidation rules to overreport income performance and underreport risk to shareholders relative to what they report to the IRS. This report is based in part on confidential tax return data obtained from the IRS Statistics of Income Division. The data are protected by nondisclosure requirements under the Internal Revenue Code, and all statistics are presented in an aggregated form.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.002
metaresearch head score (Gemma)0.027
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.005
Threshold uncertainty score0.017

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0020.027
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0020.002
Science and technology studies0.0000.001
Scholarly communication0.0030.002
Open science0.0000.001
Research integrity0.0000.001
Insufficient payload (model declined to judge)0.0050.002

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.007
GPT teacher head0.220
Teacher spread0.214 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations4
Published2007
Admission routes1
Has abstractyes

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Same venueSSRN Electronic JournalSame topicCorporate Taxation and AvoidanceFrench-language works237,207