---
_id: '14905'
abstract:
- lang: eng
  text: 'A key premise underlying most of the economic literature is that rational
    decision-makers will choose dominant strategies over dominated alternatives. However,
    prior literature in various disciplines including business, psychology, and economics
    document a series of phenomena associated with violations of the dominance principle
    in decision-making. In this comprehensive review, we discuss conditions under
    which people violate the dominance principle in decision-making. When presenting
    violations of dominance in empirical and experimental studies, we differentiate
    between absolute, statewise, and stochastic (first- and second-order) violations
    of dominance. Furthermore, we categorize the literature by the leading causes
    for dominance violations: framing, reference points, certainty effects, bounded
    rationality, and emotional responses.'
author:
- first_name: Thomas
  full_name: Kourouxous, Thomas
  id: '66936'
  last_name: Kourouxous
- first_name: Thomas
  full_name: Bauer, Thomas
  last_name: Bauer
citation:
  ama: Kourouxous T, Bauer T. Violations of Dominance in Decision-Making. <i>Business
    Research</i>. 2019;12(1):209-239. doi:<a href="https://doi.org/10.1007/s40685-019-0093-7">10.1007/s40685-019-0093-7</a>
  apa: Kourouxous, T., &#38; Bauer, T. (2019). Violations of Dominance in Decision-Making.
    <i>Business Research</i>, <i>12</i>(1), 209–239. <a href="https://doi.org/10.1007/s40685-019-0093-7">https://doi.org/10.1007/s40685-019-0093-7</a>
  bibtex: '@article{Kourouxous_Bauer_2019, title={Violations of Dominance in Decision-Making},
    volume={12}, DOI={<a href="https://doi.org/10.1007/s40685-019-0093-7">10.1007/s40685-019-0093-7</a>},
    number={1}, journal={Business Research}, author={Kourouxous, Thomas and Bauer,
    Thomas}, year={2019}, pages={209–239} }'
  chicago: 'Kourouxous, Thomas, and Thomas Bauer. “Violations of Dominance in Decision-Making.”
    <i>Business Research</i> 12, no. 1 (2019): 209–39. <a href="https://doi.org/10.1007/s40685-019-0093-7">https://doi.org/10.1007/s40685-019-0093-7</a>.'
  ieee: T. Kourouxous and T. Bauer, “Violations of Dominance in Decision-Making,”
    <i>Business Research</i>, vol. 12, no. 1, pp. 209–239, 2019.
  mla: Kourouxous, Thomas, and Thomas Bauer. “Violations of Dominance in Decision-Making.”
    <i>Business Research</i>, vol. 12, no. 1, 2019, pp. 209–39, doi:<a href="https://doi.org/10.1007/s40685-019-0093-7">10.1007/s40685-019-0093-7</a>.
  short: T. Kourouxous, T. Bauer, Business Research 12 (2019) 209–239.
date_created: 2019-11-13T08:27:11Z
date_updated: 2022-01-06T06:52:10Z
department:
- _id: '187'
- _id: '635'
doi: 10.1007/s40685-019-0093-7
intvolume: '        12'
issue: '1'
language:
- iso: eng
main_file_link:
- url: https://link.springer.com/article/10.1007/s40685-019-0093-7
page: 209-239
publication: Business Research
publication_identifier:
  issn:
  - 2198-3402
  - 2198-2627
publication_status: published
status: public
title: Violations of Dominance in Decision-Making
type: journal_article
user_id: '68607'
volume: 12
year: '2019'
...
---
_id: '5009'
abstract:
- lang: eng
  text: When analyzing the influence of taxation on agency conflicts between firm
    owners and managers, one can draw on theoretical principal–agent literature from
    various research fields. In recent years, this interdisciplinary research has
    grown significantly covering research with regards to optimal compensation, investment
    decisions, tax avoidance and transfer pricing while analyzing the effects of corporate
    income taxes, wage taxes, bonus taxes and shareholder taxes. Our paper provides
    a comprehensive review of analytical literature that studies the influence of
    taxation on agency conflicts between firm owners and managers. Above and beyond
    summarizing research findings, we discuss how taxes are commonly implemented in
    agency models, derive empirical predictions, and identify research gaps for future
    tax research.
author:
- first_name: Thomas
  full_name: Bauer, Thomas
  last_name: Bauer
- first_name: Thomas
  full_name: Kourouxous, Thomas
  id: '66936'
  last_name: Kourouxous
- first_name: Peter
  full_name: Krenn, Peter
  last_name: Krenn
citation:
  ama: 'Bauer T, Kourouxous T, Krenn P. Taxation and Agency Conflicts between Firm
    Owners and Managers: A Review. <i>Business Research</i>. 2018;11(1):33-76.'
  apa: 'Bauer, T., Kourouxous, T., &#38; Krenn, P. (2018). Taxation and Agency Conflicts
    between Firm Owners and Managers: A Review. <i>Business Research</i>, <i>11</i>(1),
    33–76.'
  bibtex: '@article{Bauer_Kourouxous_Krenn_2018, title={Taxation and Agency Conflicts
    between Firm Owners and Managers: A Review}, volume={11}, number={1}, journal={Business
    Research}, author={Bauer, Thomas and Kourouxous, Thomas and Krenn, Peter}, year={2018},
    pages={33–76} }'
  chicago: 'Bauer, Thomas, Thomas Kourouxous, and Peter Krenn. “Taxation and Agency
    Conflicts between Firm Owners and Managers: A Review.” <i>Business Research</i>
    11, no. 1 (2018): 33–76.'
  ieee: 'T. Bauer, T. Kourouxous, and P. Krenn, “Taxation and Agency Conflicts between
    Firm Owners and Managers: A Review,” <i>Business Research</i>, vol. 11, no. 1,
    pp. 33–76, 2018.'
  mla: 'Bauer, Thomas, et al. “Taxation and Agency Conflicts between Firm Owners and
    Managers: A Review.” <i>Business Research</i>, vol. 11, no. 1, 2018, pp. 33–76.'
  short: T. Bauer, T. Kourouxous, P. Krenn, Business Research 11 (2018) 33–76.
date_created: 2018-10-30T12:18:42Z
date_updated: 2022-01-06T07:01:34Z
department:
- _id: '187'
- _id: '635'
intvolume: '        11'
issue: '1'
language:
- iso: eng
main_file_link:
- open_access: '1'
  url: https://link.springer.com/content/pdf/10.1007%2Fs40685-017-0054-y.pdf
oa: '1'
page: 33-76
publication: Business Research
status: public
title: 'Taxation and Agency Conflicts between Firm Owners and Managers: A Review'
type: journal_article
user_id: '68607'
volume: 11
year: '2018'
...
---
_id: '5014'
abstract:
- lang: eng
  text: This paper studies the impact of personal and corporate income taxation on
    capital charge rates in a delegation setting with a risk-averse manager. If the
    investment level influences the riskiness of the investment project, the capital
    charge rate deviates from the firm's cost of capital and depends crucially on
    the manager's personal income tax rate. Contradicting conventional wisdom, we
    find that a higher personal income tax rate induces higher investment expenditures
    and, surprisingly, increases the capital charge rate. The countervailing effect
    that a higher capital charge rate induces higher and not lower investment expenditures
    persists for pre-tax and after-tax performance measures as well as when the tax
    deductibility of managerial compensation is limited. Corporate income tax causes
    a similar effect only in the case of limited tax deductibility of compensation.
    Our insights remain valid regardless of the financing structure and the risk attitude
    of the investors.
author:
- first_name: Thomas
  full_name: Bauer, Thomas
  last_name: Bauer
- first_name: Thomas
  full_name: Kourouxous, Thomas
  id: '66936'
  last_name: Kourouxous
citation:
  ama: Bauer T, Kourouxous T. Capital Charge Rates, Investment Incentives and Taxation.
    <i>European Accounting Review</i>. 2017;26(3):419-440. doi:<a href="https://doi.org/10.1080/09638180.2016.1169938">10.1080/09638180.2016.1169938</a>
  apa: Bauer, T., &#38; Kourouxous, T. (2017). Capital Charge Rates, Investment Incentives
    and Taxation. <i>European Accounting Review</i>, <i>26</i>(3), 419–440. <a href="https://doi.org/10.1080/09638180.2016.1169938">https://doi.org/10.1080/09638180.2016.1169938</a>
  bibtex: '@article{Bauer_Kourouxous_2017, title={Capital Charge Rates, Investment
    Incentives and Taxation}, volume={26}, DOI={<a href="https://doi.org/10.1080/09638180.2016.1169938">10.1080/09638180.2016.1169938</a>},
    number={3}, journal={European Accounting Review}, publisher={Informa UK Limited},
    author={Bauer, Thomas and Kourouxous, Thomas}, year={2017}, pages={419–440} }'
  chicago: 'Bauer, Thomas, and Thomas Kourouxous. “Capital Charge Rates, Investment
    Incentives and Taxation.” <i>European Accounting Review</i> 26, no. 3 (2017):
    419–40. <a href="https://doi.org/10.1080/09638180.2016.1169938">https://doi.org/10.1080/09638180.2016.1169938</a>.'
  ieee: T. Bauer and T. Kourouxous, “Capital Charge Rates, Investment Incentives and
    Taxation,” <i>European Accounting Review</i>, vol. 26, no. 3, pp. 419–440, 2017.
  mla: Bauer, Thomas, and Thomas Kourouxous. “Capital Charge Rates, Investment Incentives
    and Taxation.” <i>European Accounting Review</i>, vol. 26, no. 3, Informa UK Limited,
    2017, pp. 419–40, doi:<a href="https://doi.org/10.1080/09638180.2016.1169938">10.1080/09638180.2016.1169938</a>.
  short: T. Bauer, T. Kourouxous, European Accounting Review 26 (2017) 419–440.
date_created: 2018-10-30T12:44:44Z
date_updated: 2022-01-06T07:01:34Z
department:
- _id: '187'
- _id: '635'
doi: 10.1080/09638180.2016.1169938
intvolume: '        26'
issue: '3'
language:
- iso: eng
page: 419-440
publication: European Accounting Review
publication_identifier:
  issn:
  - 0963-8180
  - 1468-4497
publication_status: published
publisher: Informa UK Limited
status: public
title: Capital Charge Rates, Investment Incentives and Taxation
type: journal_article
user_id: '61801'
volume: 26
year: '2017'
...