Stable Book-Tax Differences, Prior Earnings and Earnings Persistence

Description:

This study resolves divergent prior findings relating book-tax differences to future earnings, determines whether prior literature has missed relationships between different types of book-tax differences and pre-tax and/or after-tax income, and investigates prior earnings as a factor contributing to the observed relationships. As past research has found that some firms have large book-tax differences over several years, this study separates these firms with large stable book-tax differences from others with large book-tax differences (non-stable) when investigating the link between large book-tax differences and future earnings. Finally, this study investigates whether the relationship between book-tax differences and future earnings reflects information about prior earnings and finds that prior earnings growth explains much of the lower persistence found for firms with large book-tax differences.

Creator(s): Racca, Joshua C.
Creation Date: August 2011
Partner(s):
UNT Libraries
Collection(s):
UNT Theses and Dissertations
Usage:
Total Uses: 172
Past 30 days: 4
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Creator (Author):
Publisher Info:
Publisher Name: University of North Texas
Publisher Info: www.unt.edu
Place of Publication: Denton, Texas
Date(s):
  • Creation: August 2011
Description:

This study resolves divergent prior findings relating book-tax differences to future earnings, determines whether prior literature has missed relationships between different types of book-tax differences and pre-tax and/or after-tax income, and investigates prior earnings as a factor contributing to the observed relationships. As past research has found that some firms have large book-tax differences over several years, this study separates these firms with large stable book-tax differences from others with large book-tax differences (non-stable) when investigating the link between large book-tax differences and future earnings. Finally, this study investigates whether the relationship between book-tax differences and future earnings reflects information about prior earnings and finds that prior earnings growth explains much of the lower persistence found for firms with large book-tax differences.

Degree:
Discipline: Accounting
Level: Doctoral
PublicationType: Doctoral Dissertation
Language(s):
Subject(s):
Keyword(s): Earnings | earnings persistence | book-tax differences | quality
Contributor(s):
Partner:
UNT Libraries
Collection:
UNT Theses and Dissertations
Identifier:
  • ARK: ark:/67531/metadc103378
Resource Type: Thesis or Dissertation
Format: Text
Rights:
Access: Public
Holder: Racca, Joshua C.
License: Copyright
Statement: Copyright is held by the author, unless otherwise noted. All rights