Prior research (Luft 1994) has shown in a between-subjects laboratory setting that individual decision makers are more likely to accept an employment contract containing an incentive described as a bonus than one with identical payoffs described in penalty terms. Each of these budget-based contracts has exactly two potential payoffs; which payoff a given subject receives depends on whether the subject's task performance meets (or exceeds) the budget. Luft's (1994) results are interesting because they demonstrate in an individual decision-making setting the empirical invalidity of the assumption in most formal economic analyses that people are indifferent between such alternative verbal descriptions. However, there is continuing debate and mixed evidence on the issue of whether decisional behavior evident in individual decision-making settings is also evident in market settings. This research tests whether a preference for bonus incentives characterizes equilibrium in a laboratory setting in which subjects serving as employers in half (the other half) of the markets compete with each other to attract subjects serving as workers by offering them bonus (penalty) contracts. Worker subjects are always free to choose a fixed-pay contract. Market outcomes were consistent with the prediction of no significant bonus preference evident at equilibrium.

This study investigates tax and non-tax determinants of corporate acquisition structure. In contrast to previous research, this study analyzes acquisitions from an investment financing perspective and investigates the tax implications of transaction structure for all three contracting parties--acquiring firm, target firm and target firm shareholders. Results indicate that the probability of an equity-financed tax-free transaction structure is an increasing function of the acquiring firm's likelihood of tax exhaustion. The probability of a debt-financed taxable transaction is a decreasing function of the percentage of the acquiring firm's value represented by growth opportunities (market to book ratio), and an increasing function of acquiring firm leverage and size. The results provide mixed support for the notion that target firm tax attributes and potential target firm shareholder capital gains tax liabilities influence acquisition structure. The Tax Reform Act of 1986 was expected to increase the likelihood that corporate acquisitions would be completed as tax-free transactions. Evidence in this study fails to support the conclusion that TRA86 impacted the way in which corporate acquisitions are consummated in the aggregate. Furthermore, results indicate that TRA86 did not modify the impact, on acquisition structure, of target firm tax attributes or shareholder capital gains tax liabilities. Overall, this study provides new evidence that tax and non-tax characteristics of acquiring firms are important determinants of the structure of corporate acquisitions.

This dissertation introduces to the tax evasion literature self-control theory (Gottfredson and Hirschi 1990), a general theory of crime which explains criminal preferences using socio-psychological constructs, and regards specific criminal acts as manifestations of self-interested behavior. Self-control theory postulates that individuals with the least self-control will have the greatest preference for criminal behavior. By measuring those personality traits which indicate self-control, it may be possible to identify an enduring propensity towards law-abiding or criminal behavior. When combined with knowledge of an individual's decision-making ability and current opportunity, self-control theory is a general theory of crime. Self-control theory was used to develop research questions concerning the causes of tax evasion. A survey instrument was designed to address these questions, which was administered to two groups of taxpayers. The results suggest that measures of self-control are useful in explaining evasion, and that tax evaders are most easily identified by their propensity to engage in other criminal or imprudent activities. Opportunity is useful for explaining the type of evasion committed, but not for discriminating between evaders and compliers. Since self-control theory appears applicable to the evasion problem, it provides accounting researchers with an enhanced understanding of the causes of evasion. For criminology, empirical support for self-control theory in the area of tax evasion demonstrates robustness, supporting its claim to being a general theory of crime.

Under open access, market driven transactions have become the new independent decision variables defining the behaviour of electric power systems. Understanding the impact of these bilateral transactions on system losses and line loading is important for the secure operation of the network and for establishing equitable tariffs corresponding to actual network use. The theory presented here is based on the argument that it is always possible to compute the exact loss and line loading allocation corresponding to an infinitesimal variation in a bilateral transaction. This leads to a set of governing differential equations whose solution yields the exact allocation. Numerical examples illustrate the properties of both the exact and approximate solutions of the allocation equations, as well as their dependence on the path of integration. The exact solutions are also compared with those obtained using pro-rata methods, DC power flow formulations, and contract paths. Lastly, practical applications of the allocation algorithm are suggested and discussed.

This study compares three mining taxation systems: royalty, profit tax and profitability tax, in a theoretical framework. It examines concepts and forms of taxation which are applicable to various nations, regions and/or commodities. / The study first reviews the economic characteristics of the mining industry and the principles of economic rent. Then, using a computerized model of a hypothetical project, the comparative impacts of the three tax systems are determined. / The following conclusions have been drawn from the study: (1) In general, taxes are a significant cost to a mining project. (2) A revenue taxation system (i.e. royalty) is easier to implement and enforce than either profit or profitability based systems. (3) The profit and profitability based systems are less discriminatory against low quality deposits and marginally profitable operations than a revenue taxation system.

<p> Due to the increase in corporate bankruptcy, financial distress studies have flourished since 1968. Firms do find themselves in financially distressful situations because of several factors including changing economic environment such as a decrease in aggregate demand, an increase in the cost of borrowed funds, and changes in government regulation. In addition to the Altman's z-score model, the sustainable growth rate (SGR) is another tool that is used primarily for financial planning. The problem with Altman's z-score model is that it does not consider whether a firm can be financially distressed or not if the sustainable growth rate of the firm is in fact higher than the growth rate of the firm's reported revenues. The purpose of this quantitative study was to investigate the efficacy of using ltman's z-score in forecasting financial distress of a firm when the sustainable growth rate was higher than the growth rate of the reported revenues. The sample for this study was drawn from all non-financial firms traded on the NYSE. The research question was investigated using two group design in two phases. Phase 1 involved the calculation of the sustainable growth rate (SGR), the growth rate of reported revenues, and the calculation of Altman's z-score. The Altman's z-score of the two groups were compared using Mann-Whitney <i>U</i> test to determine whether a statistically significant difference exists in the z-score. Phase 2 involved the correlation between the values of SGR and the values of Altman's z-score to determine if there was a statistically significant relationship between the two scores. The result of this research indicates that the Alman's z-score and the sustainable growth rate are conceptually independent and both can be used to ascertain whether a firm is financially distressed or not. In addition, result of this study provide practical application that could help management of firms reach important financial and managerial decisions. While the result of this study provided useful information and added to existing knowledge on financial distress, additional research using more than one year of financial data is recommended in order to confirm the results of this study.</p>

Thesis (Ph.D.)--Indiana University, Kelley School of Business, 2007. / Source: Dissertation Abstracts International, Volume: 68-09, Section: A, page: 3932. Adviser: James M. Wahlen. Title from dissertation home page (viewed May 7, 2008).

Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2008. / Source: Dissertation Abstracts International, Volume: 69-11, Section: A, page: 4395. Adviser: Mark E. Peecher. Includes bibliographical references (leaves 46-52) Available on microfilm from Pro Quest Information and Learning.

Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2006. / Source: Dissertation Abstracts International, Volume: 67-11, Section: A, page: 4242. Adviser: Mark E. Peecher. Includes bibliographical references (leaves 55-63) Available on microfilm from Pro Quest Information and Learning.

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