Disclosure Decisions Surrounding Permanently Reinvested Foreign Earnings
研究了企业披露永久性再投资境外收益相关递延税负债的决定因素，发现税收计算复杂性降低披露透明度，而估计税负规模提高透明度，但税务部门质量无显著影响。
ABSTRACT We examine the determinants of disclosure decisions relating to the unrecognized deferred tax liability on permanently reinvested earnings (PRE). Prior research shows firm value is lower when firms disclose an estimated deferred tax liability for PRE, suggesting investors find this information useful. Since accounting rules provide managers with flexibility in disclosures about the estimated tax liability on PRE, managers may have discretion in the level of transparency related to these disclosures. We find that transparency relating to disclosures about the unrecognized deferred tax liability on PRE is decreasing in the complexity of the tax calculation. We find that disclosure transparency is increasing in the size of the estimated tax liability on hypothetical repatriation of PRE. However, we do not find that disclosure is more transparent when the tax department is more sophisticated or of higher quality. We predict, but do not find, that disclosure transparency is positively related to the overall disclosure environment of the firm. JEL Classifications: G30.