We empirically investigate one form of illegal investor‐level tax evasion and its effect on foreign portfolio investment. In particular, we examine a form of round‐tripping tax evasion in which U.S. individuals hide funds in entities located in offshore tax havens and then invest those funds in U.S. securities markets. Employing Becker's () economic theory of crime, we identify the tax evasion component by examining how foreign portfolio investment varies with changes in the incentives to evade and the risks of detection. To our knowledge, this is the first empirical evidence of investor‐level tax evasion affecting cross‐border equity and debt investment.
Learning may be the single greatest challenge when entering offshore markets. Few, if any, employees have in-depth knowledge of markets other than the one where they live. Faced with the need to learn quickly about a foreign market, many companies employ a variety of approaches, in a variety of sequences. How does the sequence in which a company applies learning approaches affect performance? To assess this question, we observed nine companies in the high technology industry. To minimize geographic and cultural bias, we selected companies with headquarters in three culturally distinct markets: Finland, the U.S. and Singapore.
We develop a theory of innovation waves, investor sentiment, and merger activity based on uncertainty aversion. Investors must typically decide whether to fund an innovative project with very limited knowledge of the odds of success, a situation best described as "Knightian uncertainty."
Professional psychologists are increasingly encouraged to document and evaluate the quality of the treatment they provide. However, there is a significant gap in knowledge about the extent to which extant definitions of treatment quality converge with patient perceptions. The primary goal of this study was to examine how adolescent substance users (ASU) and their caregivers perceive treatment quality.
The Kenan Scholars will take a trip to the state capital to learn more about an important public sector actor, the North Carolina state government. Scholars will gain first-hand knowledge about the roles and responsibilities of state government, the services it provides and the role that business plays in these processes.
This trial will provide evidence on the impact of a behavioral intervention to implement huddles as a key component of team-based care models. Knowledge gained from this trial will be critical to broader deployment and successful implementation of team-based care models.
Knowledge of our changing demography can serve as both foundation and frame for how to achieve greater social, economic, environmental, and health equity in North Carolina. After describing how disruptive demographics are transforming the our state, this essay highlights a set of equity issues undergirding our shifting demography and concludes with a set of tools and strategies to make North Carolina a place where equity, inclusion, and belonging is the new normal.
Each month Launch Chapel Hill and the UNC Entrepreneurship Center host fireside chats with a different theme. These chats showcase a broad range of entrepreneurs at various stages of their venture evolution. Featured entrepreneurs will discuss their journey: the good, the bad and the ugly. The first of the spring series will be on January 27 and will feature Eric Happel, who works on Nike's Global Partners Management and Strategy team. Join us as Eric describes his decision to leave Nike for a startup, his experience building a startup and then his return to Nike with his newfound knowledge and skills.
The objective for this symposium is to inspire academic and industry experts to work together to generate and share new knowledge about private equity based on objective empirical research.
Blouin, a member of the Kenan Institute Board of Advisors, told Knowledge at Wharton that proposals to levy a 1% excise tax on corporate share buybacks and a 15% minimum tax on corporations that report more than $1 billion in book profits or in their financial statements were ill-conceived and based on misconceptions of corporate behavior.
Each summer following their sophomore year, Kenan Scholars complete hands-on experiences that put their skills and knowledge to work for the public good. Join us virtually to see how Kenan Scholars are using business to change the world for the better!
Beginning with Anderson, Banker, and Janakiraman (2003), a rapidly growing literature attributes the short-run asymmetric cost response to activity changes (i.e., sticky costs) as resulting from short-run managerial choices. In this paper, we are agnostic on the theory of sticky costs. Rather, we focus on empirical tests of cost stickiness.
We analyze the impact of the introduction of credit default swaps (CDSs) on real decision-making within the firm. Our structural model predicts that CDS introduction increases debt capacity more when uncertainty about the credit events that trigger CDS payment is lower.
We clarify differences among moderation, partial mediation, and full mediation and identify methodological problems related to moderation and mediation from a review of articles in Strategic Management Journal and Organization Science published from 2005 to 2014.
This study shows that initiation of CDS trading for an entity’s debt increases the share of loans retained by loan syndicate lead arrangers and increases loan spread. These findings are consistent with CDS initiation reducing the effectiveness of a lead arranger’s stake in the loan to serve as a mechanism to address the adverse selection and moral hazard problems in the loan syndicate.
A panel of experts convened by UNC Kenan-Flagler Business School and its affiliated Kenan Institute of Private Enterprise will be offering a press briefing via webinar on recent economic data releases which show the nation’s largest ever declines in business activity, employment and aggregate wages. Join tomorrow, Tuesday, May 12, at 11 a.m. EDT to hear from the following experts:
This article examines the development of university technology transfer operations at the Research Triangle region’s three universities.
The Biden administration has proposed several multi-trillion dollar initiatives to invest more federal dollars in infrastructure, education, healthcare and more. However, these big ticket items come at a significant cost, which the president hopes to cover through tax reforms. Proposed changes could affect individual income taxes for high earners, corporate taxes, international taxes and capital gains – and needless to say, the proposed reforms have drawn both strong critics and supporters. As dizzying negotiations and politicking continue in Washington, two of our experts unpack the proposed tax changes and their potential impacts on businesses and households in this week’s Kenan Insight.
Can decision-maker roles—roles with responsibility for allocating resources toward ideas—shape which ideas people in those roles view as creative? Prior theory suggests that expertise should influence creativity assessments, yet examples abound of experts in different roles disagreeing about whether the same idea is creative. We build and test a social context model of creative idea recognition to show how decision-maker roles can shift creativity assessments. In an experimental study, we show that relative to non-decision-making roles, decision-making roles inculcate an economic mindset and so lead to downgrading otherwise creative ideas with cues of low social approval.