Ohrn, Eric
Corporate tax breaks and executive compensation / by Eric Ohrn
Resumen.
Bibliografía.
I analyze the effect of two corporate tax breaks, bonus depreciation and the Domestic Production Activities Deduction (DPAD), on executive compensation in publicly traded US firms. I find both tax breaks significantly increase executive compensation. For every dollar a firm benefits from the tax breaks, compensation of the firm's top five highest-paid executives increases by $0.17 to $0.25. The tax breaks increase compensation primarily in firms with weaker governance structures, suggesting the compensation response is driven by executive rent extraction.
IMPUESTO DE SOCIEDADES
EXENCIONES TRIBUTARIAS
REDUCCIONES TRIBUTARIAS
ADMINISTRADORES DE SOCIEDADES
SALARIOS
ESTADOS UNIDOS
American Economic Journal : Economic Policy 1945-7731 v. 15, n. 3, August 2023, p. 215-255
Corporate tax breaks and executive compensation / by Eric Ohrn
Resumen.
Bibliografía.
I analyze the effect of two corporate tax breaks, bonus depreciation and the Domestic Production Activities Deduction (DPAD), on executive compensation in publicly traded US firms. I find both tax breaks significantly increase executive compensation. For every dollar a firm benefits from the tax breaks, compensation of the firm's top five highest-paid executives increases by $0.17 to $0.25. The tax breaks increase compensation primarily in firms with weaker governance structures, suggesting the compensation response is driven by executive rent extraction.
IMPUESTO DE SOCIEDADES
EXENCIONES TRIBUTARIAS
REDUCCIONES TRIBUTARIAS
ADMINISTRADORES DE SOCIEDADES
SALARIOS
ESTADOS UNIDOS
American Economic Journal : Economic Policy 1945-7731 v. 15, n. 3, August 2023, p. 215-255