The Information Content of Tax Expense for Firms Reporting Losses.

Autor:	DHALIWAL, DAN S., KAPLAN, STEVEN E., LAUX, RICK C., WEISBROD, ERIC
Předmět:	TAXATION of deferred compensation CORPORATE taxes DEFERRED tax TAX accounting CORPORATE accounting ACCOUNTING MANAGEMENT
Zdroj:	Journal of Accounting Research (John Wiley & Sons, Inc.); Mar2013, Vol. 51 Issue 1, p135-164, 30p, 7 Charts
Abstrakt:	We investigate whether management's decision regarding the recognition of the valuation allowance (VA) for deferred tax assets provides incremental information about the persistence of accounting losses. We introduce a classification scheme that assigns loss firm-years into three categories based on whether management appears to have recognized a material change in the VA, and whether or not the firm has positive taxable income (e.g., a net operating loss). The results of our study show that our tax categories contain information about the persistence of accounting losses over the following three years beyond variables previously identified to predict loss persistence. This incremental information is consistent with management using private information about the firm's future prospects in setting the VA. Finally, we find that investors' pricing of the VA varies with the saliency of the tax signal and the information environment of the firm. [ABSTRACT FROM AUTHOR]
Databáze:	Complementary Index
Externí odkaz:	Zobrazit plný text záznamu Plný text ve formátu HTML
Nepřihlášeným uživatelům se plný text nezobrazuje	K zobrazení výsledku je třeba se přihlásit.