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Michael Mayberry - University of Florida. Gainesville, FL, US

Michael Mayberry Michael Mayberry

Associate Professor | University of Florida

Gainesville, FL, UNITED STATES

Michael Mayberry is an expert in how taxes affect corporate behavior, the tax system and how firms minimize taxes.

Biography

Michael Mayberry is an expert in how taxes affect corporate behavior, how the tax system affects flow through entities (S-corporations) versus bigger businesses (C-corporations), and how firms minimize taxes. He is the Jack Kramer Term Associate Professor in the Warrington College of Business.

Industry Expertise (3)

Business Services

Financial Services

Accounting

Areas of Expertise (10)

Tax System Effects on Large and Small Companies

Non-GAAP Reporting of Income Taxes

Federal Accounting Standards Board

Taxes and Corporate Behavior

Accounting for Income Taxes

How Firms Minimize Taxes

Corporate Taxes

Accounting

Business

FIN 48

Media Appearances (1)

‘Street’ effective tax rates are more useful in predicting companies’ future tax outcomes, study finds

Notre Dame News  online

2020-09-30

“Street vs. GAAP: Which Effective Tax Rate Is More Informative?” is forthcoming in Contemporary Accounting Research from Erik Beardsley, assistant professor of accountancy at Notre Dame’s Mendoza College of Business, along with Michael Mayberry at University of Florida and Sean McGuire at Texas A&M University. The study finds that street ETRs provided by analysts do a better job of predicting future tax outcomes than the ETR included in financial reports prepared using GAAP. The study also finds that the market responds to street tax information more than GAAP tax information, suggesting investors find street tax expense more relevant for their decisions.

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Articles (5)

Risk-Taking Incentives and Earnings Management: New Evidence

Contemporary Accounting Research

Michael Mayberry, et al.

2021-07-10

We reexamine the positive association between stock option vega and earnings management. In contrast to ALOT, prior empirical research and practitioner literature emphasizes earnings management's goals of increasing stock price and reducing volatility. Specifically, we assess whether the association is robust to (i) employing discretionary accruals that are less prone to misspecification, (ii) focusing on a more recent time period, and (iii) including additional controls for period-specific factors.

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The Shareholder Response to Corporate Tax Planning Advice Regulation

SSRN

Michael P. Donohoe, et al.

2021-01-18

We examine the shareholder response to heightened regulation of corporate tax planning advice through the covered opinions rules under U.S. Treasury Department Circular No. 230. These rules imposed extensive due diligence obligations and drafting requirements on tax professionals for a broad range of written tax advice.

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Is Corporate Social Responsibility Related to Corporate Tax Avoidance? Evidence from a Natural Experiment

The Journal of the American Taxation Association

Michael A. Mayberry and Luke Watson

2020-08-31

We employ states' enactment of constituency statutes as plausibly exogenous shocks to the marginal cost of corporate social responsibility (CSR) and examine the relation between CSR and corporate tax avoidance. We find almost no evidence of an association between the enactment of constituency statutes and tax avoidance. We use confidence intervals and other analysis to rule out low power as an explanation.

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Street vs. GAAP: Which Effective Tax Rate Is More Informative?

SSRN

Erik Beardsley, et al.

2020-04-07

This study investigates how sophisticated market participants use tax-based information by examining whether analysts’ street effective tax rates (ETRs) are informative. When forecasting and assessing firm performance, analysts often exclude certain items they believe do not reflect current performance, resulting in “street” metrics such as street ETR.

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Good for managers, bad for society? Causal evidence on the association between risk-taking incentives and corporate social responsibility

Journal of Business Finance & Accounting

Michael Mayberry

2020-03-27

Using FAS 123R as an exogenous shock to stock options, I provide evidence that equity-based risk-taking incentives discourage corporate social responsibility (CSR). This finding suggests that compensation incentives can motivate managers not to pursue CSR strategies because CSR reduces firms’ risk and provides insurance-like benefits. Firms with a greater demand for CSR's risk reduction are more sensitive to changes in risk-taking incentives.

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Languages (1)

  • English