![]() ![]() ![]() ![]() Therefore appears the need of an integrative methodology, that allows the implementation of advanced artificial intelligence instruments for the legal area. For its unprecedented factor, all researchers must develop knowledge in a intense, while working in different thought process, language and very specific methodologies. The Victor project demands knowledge and researchers from the areas of software engineering, computer science and Law. Identifying whether, for these Brazilian companies with stock trading in the US, there would be significant modifications, after the adoption of the SOX.This paper has the goal to present the development of an instrumental solution to a necessity raised from the work plan established in a AI project between the University of Brasilia and the Brazilian Supreme Court, called "Research and development project on machine learning about judicial data on general repercussion in the Supreme Court", latter called Victor Project. This research is relevant by providing some clues, in a sophisticated informational environment, the effects of a substantial improvement of internal controls would have in the tax behavior of public companies. This study contributes to the literature on long-run tax avoidance causes and internal controls disclosures in developing countries. ![]() The results indicate that the implementation of more stringent internal controls does not inhibit the aggressive tax practices of Brazilian firms. We compared listed Brazilian firms with ADRs (treatment group) in comparison with their peer firms only listed in Brazil, or issuers of lower level ADRs not subject to SOX (control group). We measured tax aggressiveness according to the effective tax rate (ETR), long-run cash effective tax rate (CASH ETR) and the difference between book income and taxable income (BTD). In an environment of better internal controls, we would have more reliable information, restricting more abusive tax practices. The aim was to investigate whether the improvement of internal controls promoted by the adoption of SOX would have any impact on the propensity to be more tax aggressive. This paper investigates the effects of the Sarbanes-Oxley Act (SOX) on the tax aggressiveness of Brazilian firms that issued American Depositary Receipts (ADRs), in the period between 20. However, except in special cases, listing in the Corporate Governance Special Listing Segments and auditing by the Big Four do not assure less earnings management by operational decisions. The evidence from a sample of Brazilian firms suggests that listing on the São Paulo Stock Exchange´s Corporate Governance Special Listing Segments, which requires enhanced corporate governance practices, among other requirements, and auditing by one of the Big Four firms reduce in general earnings management by accounting choices, and that qualified opinion from auditor is an indicator of earnings management. In order to infer earnings manipulation by accounting choices and operational decisions, we investigate if firms that manage earnings through discretionary accruals also make operational decisions for the same purpose. Although there are some studies on earnings management by Brazilian companies, very few have examined the presence of operational decisions in this practice and none has addressed how to minimize this. This article examines whether enhanced corporate governance practices, auditing by one of the Big Four and qualified auditors’ opinions, are associated with the propensity to engage in earnings management through accounting choices or operational decisions in Brazil. ![]()
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