Author: Katharine D. Drake
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 67
Get Book Here
Book Description
Existing literature consistently documents a relationship between book-tax differences and future financial performance. Specifically, large book-tax differences are associated with lower earnings persistence. I contend that one reason the tax information contained in financial statements is informative about future earnings is that the relationship between book income and taxable income captures information about a firm's life cycle stage. Using a life cycle measure from the literature, I use fundamental analysis to group firm-year observations into life cycle stages and document a link between book-tax differences and firm life cycle. I build on prior studies that find a relation between earnings persistence and book-tax differences, and earnings persistence and firm life cycle. I find that after controlling for firm life cycle stage, the association between large positive book-tax differences and lower earnings persistence does not hold. My results offer an economic theory based explanation for the relation between book-tax differences and earnings persistence as an alternative explanation to findings in prior research.
Author: Ahmed Alhadi
Publisher:
ISBN:
Category :
Languages : en
Pages : 1
Get Book Here
Book Description
This study examines the association between firm life cycle stages and corporate tax avoidance employing the Dickinson (2011) model of firms' life cycle stages. Based on a large dataset of U.S. publicly listed firms over the 1987-2013 period, we find that compared to the shake-out stage of a firm's life cycle, tax avoidance is significantly negatively associated with the growth and maturity stages, and significantly positively associated with the introduction and decline stages of a firm's life cycle. In fact, we observe a U-shaped pattern in tax avoidance outcomes across the life cycle, consistent with the predictions of both dynamic resource-based dependence and agency theory. Finally, our results are robust to alternative measures of tax avoidance and firms' life cycle stages.
Author: Bert Johan Brys
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Lawrence J. Gitman
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 1455
Get Book Here
Book Description
Introduction to Business covers the scope and sequence of most introductory business courses. The book provides detailed explanations in the context of core themes such as customer satisfaction, ethics, entrepreneurship, global business, and managing change. Introduction to Business includes hundreds of current business examples from a range of industries and geographic locations, which feature a variety of individuals. The outcome is a balanced approach to the theory and application of business concepts, with attention to the knowledge and skills necessary for student success in this course and beyond. This is an adaptation of Introduction to Business by OpenStax. You can access the textbook as pdf for free at openstax.org. Minor editorial changes were made to ensure a better ebook reading experience. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution 4.0 International License.
Author: John E. Karayan
Publisher: John Wiley & Sons
ISBN: 0471430765
Category : Business & Economics
Languages : en
Pages : 408
Get Book Here
Book Description
A corporate guide to understanding the basic tax implications ofeveryday business Organized to cover the tax implications of transactions as theyoccur through a company's life cycle, the basic principles of taxmanagement are applied through the use of case studies thatsimulate a variety of real-world marketplace conditions.Value-added and financial reporting effects of tax management arediscussed, as well as country-specific tax rules, and cross-bordertransactions. John E. Karayan, JD, PhD (Glendale, CA), is a professor atCalifornia State Polytechnic University, Pomona. He is also apartner in the law firm of Bond Karayan. Charles W. Swenson, PhD (Pasadena, CA), is a professor atthe University of Southern California, Los Angeles, where heteaches a number of courses in accounting and taxation. Over the years, financial professionals around the world havelooked to the Wiley Finance series and its wide array ofbestselling books for the knowledge, insights, and techniques thatare essential to success in financial markets. As the pace ofchange in financial markets and instruments quickens, Wiley Financecontinues to respond. With critically acclaimed books by leadingthinkers on value investing, risk management, asset allocation, andmany other critical subjects, the Wiley Finance series provides thefinancial community with information they want. Written to provideprofessionals and individuals with the most current thinking fromthe best minds in the industry, it is no wonder that the WileyFinance series is the first and last stop for financialprofessionals looking to increase their financial expertise.
Author: Bert Brys
Publisher:
ISBN:
Category :
Languages : en
Pages : 28
Get Book Here
Book Description
This paper analyses the impact of capital income taxes on financial and investment decisions of corporations. Extending Sinn's (1991) nucleus theory of the firm with debt finance, the model determines the optimal sources of finance (debt, newly issued equity or retained earnings), the optimal use of the investment's earnings (dividends, retentions, interest payments or debt redemption), and the optimal capital accumulation throughout the life cycle of the firm.
Author: Andrés Erosa
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Katharine D. Drake
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Existing literature consistently documents a relation between book-tax differences and future financial performance. Specifically, Hanlon (2005) finds that large book-tax differences are associated with lower earnings persistence. I contend that one reason the tax information contained in financial statements is informative about future earnings is that the relation between book income and taxable income captures information about a firm's life cycle stage. Using life cycle measures from the accounting literature, I use fundamental analysis to group firm-year observations into life cycle stages and document a link between book-tax differences and firm life cycle. I find that controlling for firm life cycle stage weakens the association between large book-tax differences and lower earnings persistence. I also find that life cycle explains a portion of investor valuation of earnings persistence for firms with large book-tax differences. My results offer an explanation grounded in economic theory for a portion of the relation between book-tax differences and earnings persistence documented in prior research.
Author: Alan J. Auerbach
Publisher: Cambridge University Press
ISBN: 1139464515
Category : Business & Economics
Languages : en
Pages : 401
Get Book Here
Book Description
This book was first published in 2007. Most countries levy taxes on corporations, but the impact - and therefore the wisdom - of such taxes is highly controversial among economists. Does the burden of these taxes fall on wealthy shareowners, or is it passed along to those who work for, or buy the products of, corporations? Can a country with high corporate taxes remain competitive in the global economy? This book features research by leading economists and accountants that sheds light on these and related questions, including how taxes affect corporate dividend policy, stock market value, avoidance, and evasion. The studies promise to inform both future tax policy and regulatory policy, especially in light of the Sarbanes-Oxley Act and other actions by the Securities and Exchange Commission that are having profound effects on the market for tax planning and auditing in the wake of the well-publicized accounting scandals in Enron and WorldCom.
Author: Isabel Verlinden
Publisher:
ISBN: 9789087224868
Category :
Languages : en
Pages :
Get Book Here
Book Description
