Dhaliwal, Dan S.
[Verfasser:in]
;
Pincus, Morton
[Sonstige Person, Familie und Körperschaft];
Lee, Hye Seung (Grace)
[Sonstige Person, Familie und Körperschaft];
Steele, Logan B.
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: The Journal of the American Taxation Association: Vol. 39, No. 1, pp. 1-24, Spring 2017
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 16, 2015 erstellt
Beschreibung:
We examine whether estimated taxable income provides incremental information about firms' operating risk. We develop taxable income-based measures that should be useful in assessing risk in a simple earnings predictability model. In our empirical tests these taxable income-based measures explain cross-sectional variation in the predictability and variability of future pre-tax financial performance. Further, these measures are associated with predictable variation in market-based measures of firm risk. Our findings shed light on how accounting information — specifically, book income and tax income — impacts investors' assessment of firm risk as well as improving our understanding of the extent and nature of information contained in estimated taxable income