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Decision science researchers have studied the influence of information overload extensively. Current electronic word of mouth (eWOM) research suggests that too much or too little information in a review can lead to decreased trust and purchase intent. This study adds to that paradigm by exploring the effects of images on uncertainty reduction in eWOM. More specifically, this study analyzes how images may influence trust and purchase intent based on an online review when there is too little or too much textual information. Findings indicate that when there is too little textual information, adding images increases trust and purchase intention, as information load increases. Likewise, when there is too much textual information, research suggests that consumers tend to skip over parts of the text. As such, images are still valuable, as they offer information that might have been missed in the text. These results suggest that when an improper amount of text is provided in a review, images may moderate the potential negative effects of that text length on trust and purchase intent.

Images are frequently used in online reviews, yet little research explores the effects that images have on online consumer behavior. This two-study investigation examines the effects of images in electronic word of mouth (eWOM) for both hedonic and utilitarian products. Results show that images affect the relationship between review text and purchase intention as well as trust for both product categories. However, images were shown to be more effective for hedonic than utilitarian products. Interestingly, it was found that congruence between the image and text is not a significant predictor of trust or purchase intention in some conditions (i.e., the images may not have to perfectly reflect the text to facilitate these outcomes for utilitarian products).

From 1973 to 2017, US multinational firms with foreign operations were able to avoid US tax on foreign earnings if those earnings were designated as permanently reinvested. Seeking to avoid tax liability and give the appearance of better performance, firms designated over 3 trillion USD as permanently reinvested. The behaviors and decisions of managers during this period afford researchers a glimpse into the ethical motivations of these managers. Analysis showed that rather than reinvesting those earnings into operations, much was used to fund suboptimal investments or held as cash, reducing tax revenues, stunting growth and reducing domestic liquidity. Managers with a short-term focus could use the PRE designation to make earnings appear higher in the current year, to the future detriment of the firm. This paper uses rational choice theory, self-serving bias and the Markkula framework to analyze earnings repatriation decisions, and conclude that self-serving bias led managers to act under the rights perspective of the Markkula framework, rather than the utilitarian, fairness, common good or virtue perspectives.

Financial Interpretation No. 48 (FIN 48) requires firms to create tax liabilities for tax positions that do not meet a more-likely-than-not threshold. Early work suggests that companies have an incentive to minimize these reported liabilities. This study seeks to investigate situational factors that influence auditor's assessments of FIN 48 reporting. Specifically, FIN 48's multi-layered subjectivity allows managers substantial discretion. This study uses rational choice theory and self-serving bias to examine auditor's assessment of manager's uncertain tax benefits recognition decision, based on the uncertainty associated with tax positions and financial impact. A proposed study using a scenario-based experiment is outlined.

Brand holders have little control over negative reviews, however most review platforms allow them to respond to reviews. The characteristics of review responses that influence brand attitudes and consumer intentions are not well understood. As such, this study seeks to contribute to our understanding of the influence of review responses on consumer outcomes. A model of purchase intention based on a review response factor (congruence between the service failure and the level of compensation identified in the response) is developed and tested using a scenariobased experiment. Fifteen scenarios are developed (3 levels of service failure and 5 responses). Using ANO VA and pairwise comparisons, 5,607 responses are analyzed. Relationships are identified between compensation and purchase intention. Specifically, any level of compensation increases purchase intention more than no compensation. Additionally, purchase intention is higher when compensation matches the level of service failure (higher compensation for more severe service failure results in higher purchase intention). However, we were not able to support a relationship between excessive compensation and purchase intention.

Previous research has shown a positive link between long-term performance plans and critical corporate decisions such as capital investment, acquisitions, and divestitures. However minimal research exists as to whether these plans are associated with overall improved corporate performance. Attribution of performance effects of long-term performance plans is difficult because of systemic differences between firms using plans and firms that do not. We use propensity score matching to control for these systemic differences. Our results provide evidence that firms with long-term performance plans outperform other firms in terms of both fundamental accounting performance and future abnormal stock returns, and suggest that this superior performance is not attributable to other factors.

The TCJA also closed a tax loophole by switching from a worldwide tax system, under which foreign- source income was taxed only when repatriated, to a quasi-territorial tax system, under which foreign-source income is substantially exempt from U.S. taxation, except for the additional tax imposed on certain foreign earnings [known as the Global Intangible Low-Taxed Income (GILTI) provision]. Evidence of the Manipulation of PRE Researchers have also found that even if repatriation is the optimal decision from a real income perspective, accounting income considerations tend to prevail, resulting in foreign earnings that are never repatriated (Douglas A. Shackelford, Joel Slemrod, and James M. Sallee, \"Financial Reporting, Tax, and Real Decisions: Toward a Unifying Framework,\" International Tax and Public Finance, August 2011, http://bit.ly/2mi4iYi). Since it is fairly easy to meet the intention criterion, it should not be surprising that there is empirical evidence that MNCs use PRE to manage earnings, manipulating it to reduce effective tax rates, meet earnings targets, and increase managers' compensation (e.g., Linda K. Krull, \"Permanently Reinvested Foreign Earnings, Taxes, and Earnings Management,\" Accounting Review, February 2004, http://bit.ly/2miHA2f; C. Fritz Foley, Jay C. Hartzell, Sheridan Titman, and Garry Twite, \"Why Do Firms Hold So Much Cash? A Tax-based Explanation,\" Journal of Financial Economics, December 2007, http://bit.ly/2knMpGY; Zhan Furner, \"The Relationship between Permanently Reinvested Foreign Earnings, Analysts' Expectations, and Executive Compensation,\" working paper, 2017). When making location, reinvestment, and repatriation decisions, MNCs care as much about being able to defer taxes for accounting purposes as saving taxes (J. Graham, M. Hanlon, T. Shevlin, and N. Shroff, \"Inside the Corporate Tax Department: Insights on Corporate Decision Making and Tax Aggressiveness,\" working paper, 2011). [...]requiring a tabulated summary that covers each balance sheet period would enable financial statement users to more easily (i.e., without computation) understand an MNC's available domestic liquid assets and operating cash flows. q Zhan Furner, PhD, CPA, is an assistant professor, and Denise Dickins, PhD, CPA, CIA, is a professor, both at East Carolina University, Greenville, N.C. Researchers have also found that even if repatriation is the optimal decision from a real income perspective, accounting income considerations tend to prevail, resulting in foreign earnings that are never repatriated.

According to a March 2016 estimate, U.S. MNCs held over $2.4 trillion in foreign earnings abroad, which if repatriated, could generate $695 billion in potential tax revenue.4 This is more than the U.S. budget deficit of $590 billion for fiscal year 2016. [...]the combination of current U.S. corporate tax policy and financial reporting policy for foreign earnings create strong incentives for firms to leave earnings overseas indefinitely. [...]one study finds a positive association between the firm-specific, estimated potential tax costs of repatriation and the amount of cash held by the firm overseas.16 This finding is consistent with companies responding to the tax and financial reporting incentives by keeping their earnings overseas indefinitely, and the finding points to the tendency of firms to keep these earnings in cash rather than re-investing. According to PwC, and consistent with the above example, many of these PRE-related comment letters include requests from the SEC for additional information and clarification on a company's: (1) assertion that it is impracticable to estimate the taxes on the foreign earnings; (2) assertion that the foreign earnings are indefinitely reinvested abroad; and (3) assertion that some of the foreign earnings are to be repatriated with the remaining foreign earnings to be indefinitely reinvested.29 If a company has recently repatriated foreign earnings, the SEC often requests additional evidence from the company regarding the validity of the claim that the company does not expect to repatriate its foreign earnings in the foreseeable future.

In July 2016, the Financial Accounting Standards Board (FASB) issued an Exposure Draft of a Proposed Accounting Standards Update related to income taxes. The proposal included an array of new disclosure requirements for income taxes and was open for comments until Sep 30, 2016. The resulting comment letters reflect a fierce debate among accountants, various tax organizations, and US corporations over the potential costs and possible offsetting benefits of these additional required disclosures. In particular, many large US multinational corporations (MNC) are concerned with the proposed new disclosures regarding foreign earnings and cash, especially previously untaxed foreign earnings. This article discusses the details of the financial reporting policies for foreign earnings and explains the resulting incentives for US MNCs to hoard their earnings overseas. It also explores the efforts of the FASB and the SEC to improve these financial reporting policies and the resistance to these changes from US MNCs.