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)
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
Media Appearances (1)
‘Street’ effective tax rates are more useful in predicting companies’ future tax outcomes, study finds
Notre Dame News online
“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.
Risk-Taking Incentives and Earnings Management: New EvidenceContemporary Accounting Research
Michael Mayberry, et al.
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.
The Shareholder Response to Corporate Tax Planning Advice RegulationSSRN
Michael P. Donohoe, et al.
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.
Is Corporate Social Responsibility Related to Corporate Tax Avoidance? Evidence from a Natural ExperimentThe Journal of the American Taxation Association
Michael A. Mayberry and Luke Watson
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.
Street vs. GAAP: Which Effective Tax Rate Is More Informative?SSRN
Erik Beardsley, et al.
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.
Good for managers, bad for society? Causal evidence on the association between risk-taking incentives and corporate social responsibilityJournal of Business Finance & Accounting
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.