1. Who Writes the Check? FirmInvestors/Individual Who Makes the Decision? Manager  Investment  Financing  Org. Structure  Compensation  Tax Strategy  Disclosure  Governance  Investment  Financing  Org. Structure  Compensation Investor  Pricing of Corporate Tax Strategy  Information Content of Corporate Tax Disclosures  Analysts and Corporate Taxes  Pricing investor-level taxes  Investor portfolio allocation Policy Maker  Investment Taxes  NOL Policy  Repatriation Holidays  Inversions/Avoidance  Tax Enforcement  GAAP Information  Investment Taxes

2. Taxes as a Market Friction (RHS)Taxes as InformationTaxes as Strategic Choice (RHS) Idea: Taxes affect choicesIdea: Tax disclosures are usefulIdea: Optimizing tax reporting Financial Markets (Asset Pricing) - Expected returns (via dividend policy, capital gains, etc.) - M&A Valuation - Trading and portfolio decisions (clientele or arbitrage effects) Investment (Asset side of B/S) - Investment and tax incentives - Portfolio vs. direct investment - M&A Structure Corporate Finance (L&E side of B/S) - Capital structure (debt vs. equity) - Payout policy (buybacks, divs., etc.) - Compensation structure Accounting Choice - Inventory methods - Earnings manipulation Proxy for profitability - Earnings persistence - Valuation allowances Forecasting taxes - Tax persistence - Analyst forecasting Enforcement - Tax avoidance / aggressiveness - Book-tax comparisons Determinants of tax strategy -Opportunities -Incentives Role for agency theory - Agency conflicts and optimal tax planning - Internal and external governance Tax planning and valuation - Market pricing of tax strategy - Cash flows or discount rates

3. Some questions to start us off: 1)What topics/questions have you recently found new and interesting? Why? 2)What topics/areas do you think it is more difficult to contribute to? 3)In what areas do we need better links between theory and evidence? 4) Are there areas where accountants are not doing much research, but we might want to jump in?

4. Examples of seminal work to guide us Crocker, K. and J. Slemrod. 2005. Corporate tax evasion with agency costs. Journal of Public Economics 89 (9-10): 1593-1610. Slemrod, J. 2007. "Cheating Ourselves: The Economics of Tax Evasion." Journal of Economic Perspectives, 21(1): 25-48. Slemrod, Joel. 2004. " The Economics of Corporate Tax Selfishness." National Tax Journal, 57(4): 877-898. Modigliani, F. and M. Miller. 1958. The Cost of Capital, Corporation Finance and the Theory of Investment. American Economic Review, 48(3): 261-297. Modigliani, F. and M. Miller. 1963. Corporate Income Taxes and the Cost of Capital: A Correction. American Economic Review, 53, 433-43. Miller, M. H. (1977). Debt and Taxes. Journal of Finance, 32, 261-75. Harberger, Arnold (1962). The incidence of the corporation income tax. Journal of Political Economy 70(3): 215-240.