Tax audits are a necessary component of the tax system, but policymakers and others have expressed concerns about their potentially adverse real effects. Understanding the causal effects of tax audits has been hampered by lack of data and because typically tax audits are not randomly assigned. We use administrative data from random tax audits of small businesses to examine the real effects of being subject to a tax audit.
We examine the role of political affiliation during the selection of Opportunity Zones, a place-based tax incentive enacted by the Tax Cuts and Jobs Act of 2017. We find governors are on average 7.6% more likely to select a census tract as an Opportunity Zone when the tract’s state representative is a member of the governor’s political party. This effect is incremental to local demographic factors that increased the likelihood of selection, such as lower income levels and preceding improvements in local conditions.
How does sentiment in a pitch affect an entrepreneur’s fundraising outcomes? Although research suggests that negativity in entrepreneurial “pitches” to investors adversely impacts resource acquisition, there is a lack of empirical research showing whether, and to what extent, this is true. We study over 30,000 entrepreneurial loan requests from one of the largest loan marketplaces to understand how the sentiment in text-only pitches to investors affects fundraising. In contrast to prior literature, we find that negatively-worded pitches are funded faster than positively-worded ones.
As of 2019, salary history bans were enacted by 17 states and Puerto Rico with the stated purpose of reducing the gender pay gap. We argue that salary history bans may negatively affect wages as employers lose an informative signal of worker productivity. We empirically evaluate these laws using a large panel dataset of disaggregated wages covering all public-sector employees in 36 states and find, on average, that salary history bans lead to a 3% decrease in new-hire wages.
Common wisdom suggests that when it comes to launching a startup, you need co-founders. But a new study finds that solo founders can in fact be successful — if they have the support of co-creators. Co-creators are individuals or organizations that play a critical role in helping a founder build their business, but without receiving the control or equity of a formal co-founder.
We study the relation between trade credit, asset prices, and production-network linkages. Empirically, firms extending more trade credit earn 7.6% p.a. lower risk premiums and maintain longer relationships with customers.
The data-generating process of productivity growth includes both trend and business-cycle shocks, generating many counterfactuals for prices under full-information. In practice, agents cannot immediately distinguish between the two shocks, leading to "rational confusion": each shock inherits properties of its counterpart.
The Kenan Institute of Private Enterprise hosted a candid discussion regarding the effects of COVID-19 on universities and what a return to campus might look like, including the inevitable complications. Experts addressed special research findings from two surveys of university presidents, the quantification of potential financial impact of COVID-19 on higher ed and presented scenarios and related strategic options. This webinar featured UNC Kenan-Flagler Business School Professor & Co-founder of ABC Insights Paul Friga, Ph.D., Chronicle of Higher Education Senior Writer Scott Carlson, Association of American Colleges & Universities President Lynn Pasquarella, Ph.D. and rpk GROUP Founder & Senior Partner Rick Staisloff.
A BloombergView article on the negative economic effects of the growing number of mega companies dominating American markets features the latest research co-authored by Kenan Institute Director Greg Brown. The research looks at how the dramatic change in the number and composition of firms listed on major U.S. exchanges over the past two decades – namely, more larger, older companies and fewer companies overall – has resulted in historically low levels of idiosyncratic risk.
Policies that require, or recommend, disclosure of corporate tax information are becoming more common throughout the world, as are examples of tax-related information increasingly influencing public policy and perceptions. In addition, companies are increasing the voluntary provision of tax-related information. We describe those trends and place them within a taxonomy of public and private tax disclosure.
A pooled Public Use Microdata Sample File of the Census Bureau’s Annual American Community Survey (2011-2015) is used to (1) create a demographic profile of the nation’s older adult population; (2) develop an older adult household typology which encapsulates both generational dynamics and diverse living arrangements; and (3) identify older adults who face the greatest barriers to aging in place. Policies and strategies that support and facilitate successful aging in place for the most vulnerable older adults are discussed.
American Community Survey data are used to develop typologies of the generational dynamics and living arrangements of the estimated 1.6 million U.S. older adult households who will likely encounter the most difficulty aging in place. Policy recommendations and strategies are offered to address the specific barriers and challenges that must be overcome in order for these older adults to successfully live out their lives in their homes and community.
Scott Kupor, managing partner with venture capital firm Andreesen Horowitz and author of "Secrets of Sandhill Road: Venture Capital and How to Get It," discusses the industry’s obligation to embrace inclusiveness and increase diversity.
How do an organization's task requirements affect the ways in which it reacts to competitors’ strategic investments? This study uses a novel measure of task requirements (Case Mix Index), to test the competitive and spillover effects of prior adoption on a focal organization's timing of adoption, while accounting for the underlying demand-side drivers of adoption.
CREATE, an economic development center at the institute, worked with civic and business leaders in Rocky Mount last summer to plan a Black Business Matters District downtown in an effort to address the racial wealth gap in the area. Executive Director Mark Little will join CREATE’s Rocky Mount partners on a panel at 9 a.m. on Thursday, March 24 to share their work as part of Carolina’s Engagement Week.
The third annual Kenan Institute Frontiers of Entrepreneurship Conference convened thought leaders from academia, industry and government to debate the most challenging current issues in the field of entrepreneurship and set the agenda for future research and policy. It was held on Jan. 31 and Feb. 1, 2019 at The Breakers Palm Beach.
Participants in the 2019 Kenan Institute Frontiers of Entrepreneurship conference address the obstacles facing women and underrepresented minority entrepreneurs – from funding to mentorship, resourcing and more – and why overcoming those barriers matters for the broader U.S. and global economies.
...the abuse of opioids has reached epidemic proportions, with annual deaths from opioids of over 1 in 10,000 Americans. These staggering rates of addiction, hospitalization and often death has had...
On Sept. 28, 2018, we traveled to Elizabeth City for the launch NCGrowth's SmartUp Program. We took a ride on U.S. Coast Guard boats, sampled local food and drink and learned how this nearly $1 million SunTrust Foundation grant will impact the community.
Many people dream of starting their own business. But before they can make their dream a reality, one of the first and most important decisions they must make is whether to go it alone or partner with someone they may, or may not, already know. Which approach is better? Kenan Institute Grant Recipient Travis Howell, previews his findings in a soon-to-be-published working paper.