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Firms’ real and reporting response to taxation: A discussion

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  • Blouin, Jennifer

Abstract

This discussion reflects my thoughts on Lester and Olbert's (2025) review of the tax literature. I address the notion of “real” effects in tax work and the reliance by Lester and Olbert (2025) on the Hall and Jorgenson (1967) neoclassical framework. I intend to complement the review by discussing some of the competitive advantages of accounting researchers working in taxation. I close by emphasizing some areas where accountants can potentially be the most impactful on tax research and listing some of my hopes for the future of this work.

Suggested Citation

  • Blouin, Jennifer, 2025. "Firms’ real and reporting response to taxation: A discussion," Journal of Accounting and Economics, Elsevier, vol. 80(2).
    • Handle: RePEc:eee:jaecon:v:80:y:2025:i:2:s0165410125000722
    DOI: 10.1016/j.jacceco.2025.101836
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    References listed on IDEAS

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    1. Mills, Lillian F. & Plesko, George A., 2003. "Bridging the Reporting Gap: A Proposal for More Informative Reconciling of Book and Tax Income," National Tax Journal, National Tax Association;National Tax Journal, vol. 56(4), pages 865-893, December.
    2. Mihir A. Desai, 2003. "The Divergence between Book Income and Tax Income," NBER Chapters, in: Tax Policy and the Economy, Volume 17, pages 169-208, National Bureau of Economic Research, Inc.
    3. Shackelford, Douglas A. & Shevlin, Terry, 2001. "Empirical tax research in accounting," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 321-387, September.
    4. Douglas Shackelford & Joel Slemrod & James Sallee, 2011. "Financial reporting, tax, and real decisions: toward a unifying framework," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(4), pages 461-494, August.
    5. Blouin, Jennifer & Robinson, Leslie, 2025. "Accounting for the profits of multinational enterprises: Double counting and misattribution of foreign affiliate income," Journal of Public Economics, Elsevier, vol. 252(C).
    6. Hoopes, Jeffrey L. & Robinson, Leslie & Slemrod, Joel, 2018. "Public tax-return disclosure," Journal of Accounting and Economics, Elsevier, vol. 66(1), pages 142-162.
    7. Scott D. Dyreng & Jeffrey L. Hoopes & Jaron H. Wilde, 2016. "Public Pressure and Corporate Tax Behavior," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 54(1), pages 147-186, March.
    8. Hanlon, Michelle & Heitzman, Shane, 2010. "A review of tax research," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 127-178, December.
    9. Hanlon, Michelle & Maydew, Edward L. & Shevlin, Terry, 2008. "An unintended consequence of book-tax conformity: A loss of earnings informativeness," Journal of Accounting and Economics, Elsevier, vol. 46(2-3), pages 294-311, December.
    10. Evsey D. Domar & Richard A. Musgrave, 1944. "Proportional Income Taxation and Risk-Taking," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 58(3), pages 388-422.
    11. Maydew, Edward L., 2001. "Empirical tax research in accounting: A discussion," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 389-403, September.
    12. Alexander Ljungqvist & Liandong Zhang & Luo Zuo, 2017. "Sharing Risk with the Government: How Taxes Affect Corporate Risk Taking," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 55(3), pages 669-707, June.
    13. Lester, Rebecca & Olbert, Marcel, 2025. "Firms’ real and reporting responses to taxation: A review," Journal of Accounting and Economics, Elsevier, vol. 80(2).
    14. Hanlon, Michelle & Laplante, Stacie Kelley & Shevlin, Terry, 2005. "Evidence for the Possible Information Loss of Conforming Book Income and Taxable Income," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 407-442, October.
    15. Campbell, Katherine & Helleloid, Duane, 2016. "Starbucks: Social responsibility and tax avoidance," Journal of Accounting Education, Elsevier, vol. 37(C), pages 38-60.
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    Keywords

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    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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