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Corporate Tax Avoidance and High Powered Incentives
National Bureau of Economic Research [NBER] 
May 17, 2004
Excerpt: We find that, for the full sample of firms, increases in incentive compensation tend to reduce the level of tax sheltering, suggesting a complementary relationship between diversion and sheltering. As predicted by the model, the relationship between incentive compensation and tax sheltering is a function of a firm's corporate governance.
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