Bischof, Dörrenberg, and Voget study accounting-related decision processes within firms. They build on the rich survey data provided by the German Business Panel (C01) and study how managers form expectations and preferences for, for example, cost structures, pass-through of taxes, and the internal generation of earnings data. In addition, they analyze how managers form preferences for earnings management and explore the role of tax uncertainty for expectations and investment decisions. The new PI, Dörrenberg, strengthens A11 with his experience in implementing randomized studies out-side of surveys.
How do manager preferences and firm structure affect discretionary accounting and taxation choices?
We investigate how firms’ reactions depend on the type of information these firms receive and how it affects the way firms process legislative and regulatory actions. Thereby, our research improves our understanding of how transparency requirements in accounting and tax regulation affect businesses.
In particular, we aim to shed light on processes within firms to improve our understanding of why and how firms make decisions. In this context, we for example study managerial decisions with regard to cost structures, the pass-through of taxes, and the internal generation of earnings data. Second, we study how managers form expectations and preferences. In this project, we aim to overcome some of the limitations of archival data in addressing the research questions at hand.
In this project, we aim to overcome some of the limitations of archival data in addressing the research questions at hand. We implement customized surveys to measure variables that are difficult to observe in archival data and to run randomized survey experiments to generate random variation in variables for which (quasi-)random variation is not observed in the field.