Author: Michelle Lee Hanlon
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 130

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Book Description

Author: Michelle Lee Hanlon
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 0

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Author: Frederic S. Mishkin
Publisher: University of Chicago Press
ISBN: 0226531929
Category : Business & Economics
Languages : en
Pages : 184

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Book Description
A Rational Expectations Approach to Macroeconometrics pursues a rational expectations approach to the estimation of a class of models widely discussed in the macroeconomics and finance literature: those which emphasize the effects from unanticipated, rather than anticipated, movements in variables. In this volume, Fredrick S. Mishkin first theoretically develops and discusses a unified econometric treatment of these models and then shows how to estimate them with an annotated computer program.

Author: Kai Wai Hui
Publisher:
ISBN:
Category :
Languages : en
Pages : 46

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Book Description
Economic theory suggests that the industry-wide component of firm performance is more persistent than the firm-specific component. This paper provides evidence on this assertion and tests whether investors misprice these components of earnings. Consistent with predictions, we find greater persistence in the industry-wide component of earnings that is not fully recognized in stock prices. We show that these effects are partially driven by the market's inability to recognize the differential persistence of industry-wide earnings in homogenous industries or in the presence of a large business shock. Finally, we show that industry-wide cash flows is the most persistent component of earnings while firm-specific accruals is the least persistent, suggesting that economic fundamentals and accounting constructs are jointly informative about firms' future earnings. The market predictably misprices these components, however, significantly underweighting the persistence of industry-wide cash flows and overweighting the persistence of firm-specific accruals.

Author: Anibal Baez-Diaz
Publisher:
ISBN:
Category :
Languages : en
Pages : 48

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Book Description
We examine managerial incentives underlying book accruals and tax accruals affecting stock prices. Due to the differential incentives underlying tax and financial reporting systems differences between book and tax earnings are likely to exist despite the requirements of tax conformity. It is widely argued in the literature that tax conformity will likely reduce opportunistic behavior. However, recent findings of Hanlon et al. (2006) indicate that tax conformity leads to tax-induced conservatism which in turn reduces the information content of earnings. Hanlon (2005) demonstrates the association between tax differences and the persistence of earnings. We decompose total accruals into discretionary tax accruals and non-discretionary tax accruals, discretionary book accruals and non-discretionary book accruals to examine how the market prices book versus tax accruals. As predicted, the evidence shows that during the period of 1986-2001 firms had increased the use of income decreasing discretionary tax accruals in an effort to reduce their tax liability. In contrast with prior studies, a test of equality of multivariate regression coefficients reveals that the persistence of the nondiscretionary book accruals is not significantly different than the cash flow component of earnings. This implies that by taking into account the tax incentives embedded in tax accruals provides a more transparent measure of book accruals that better reflects changes in earnings and firm value. The market's inability to correctly assess the persistence of accruals is more severe for tax accruals than for book accruals. In addition, a trading strategy of portfolios with high levels of discretionary tax accruals yields positive size-adjusted abnormal returns. These results suggest that the market has difficulty interpreting tax accruals either because of lack of sufficient disclosure regarding these accruals or lack of understanding of their tax consequences.

Author: David Hay
Publisher: Routledge
ISBN: 1136210350
Category : Business & Economics
Languages : en
Pages : 387

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Book Description
Auditing has been a subject of some controversy, and there have been repeated attempts at reforming its practice globally. This comprehensive companion surveys the state of the discipline, including emerging and cutting-edge trends. It covers the most important and controversial issues, including auditing ethics, auditor independence, social and environmental accounting as well as the future of the field. This handbook is vital reading for legislators, regulators, professionals, commentators, students and researchers involved with auditing and accounting. The collection will also prove an ideal starting place for researchers from other fields looking to break into this vital subject.

Author: Sue Joy Wright
Publisher:
ISBN: 9780170261951
Category : Business enterprises
Languages : en
Pages : 720

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Book Description
Business Analysis and Valuation has been developed specifically for students undertaking accounting Valuation subjects. With a significant number of case studies exploring various issues in this field, including a running chapter example, it offers a practical and in-depth approach. This second edition of the Palepu text has been revitalised with all new Australian content in parts 1-3, making this edition predominantly local, while still retaining a selection of the much admired and rigorous Harvard case studies in part 4. Retaining the same author team, this new edition presents the field of valuation accounting in the Australian context in a clear, logical and thorough manner.

Author: United States. Congress. House. Committee on Ways and Means
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 196

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Author: Luca Menicacci
Publisher: FrancoAngeli
ISBN: 8835140153
Category : Business & Economics
Languages : en
Pages : 138

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Book Description
368.24

Author: John R. Graham
Publisher: Now Pub
ISBN: 9781601986122
Category : Business & Economics
Languages : en
Pages : 176

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Book Description
Accounting for Income Taxes is the most comprehensive review of AFIT research. It is designed both to introduce new scholars to this field and to encourage active researchers to expand frontiers related to accounting for income taxes. Accounting for Income Taxes includes both a primer about the rules governing AFIT (Sections 3-4) and a review of the scholarly studies in the field (Sections 5-8). The primer uses accessible examples and clear language to express essential AFIT rules and institutional features. Section 3 reviews the basic rules and institutional details governing AFIT. Section 4 discusses ways that researchers, policymakers, and other interested parties can use the tax information in financial statements to better approximate information in the tax return. The second half of the monograph reviews the extant scholarly studies by splitting the research literature into four topics: earnings management, the association between book-tax differences and earnings characteristics, the equity market pricing of information in the tax accounts, and book-tax conformity. Section 5 focuses on the use of the tax accounts to manage earnings through the valuation allowance, the income tax contingency, and permanently reinvested foreign earnings. Section 6 discusses the association between book-tax differences and earnings characteristics, namely earnings growth and earnings persistence. Section 7 explores how tax information is reflected in share prices. Section 8 reviews the increased alignment of accounting for book purposes and tax purposes. The remainder of the paper focuses on topics of general interest in the economics and econometric literatures. Section 9 highlights some issues of general importance including a theoretical framework to interpret and guide empirical AFIT studies, the disaggregated components of book-tax differences and research opportunities as the U.S. moves toward International Financial Reporting Standards (IFRS). Section 10 discusses econometric weaknesses that are common in AFIT research and proposes ways to mitigate their deleterious effects.