Measuring Corporate Tax Preferences

2002 ◽  
Vol 24 (2) ◽  
pp. 1-17 ◽  
Author(s):  
Amy E. Dunbar ◽  
Richard C. Sansing
Keyword(s):  
Stock Market ◽  
Financial Reporting ◽  
Intangible Assets ◽  
Corporate Investment ◽  
Financial Accounting ◽  
Market Returns ◽  
Corporate Tax ◽  
Stock Market Returns ◽  
Two Measures ◽  
Tax Accounting

This paper examines the measurement of corporate tax preferences. It develops a model of corporate investment in which a certain fraction of the investment is immediately expensed. This model is representative of the treatment of costs associated with internally developed intangible assets, which generally are expensed for both financial reporting and tax purposes. Analysis of the model shows that accounting-based measures of tax preferences are deficient because such measures detect only tax preferences that generate book-tax differences. The paper then proposes a new measure in which pre-tax accounting income is replaced by pre-tax stock market returns, which detects tax-favored investments regardless of their financial accounting treatment. A comparison of the two measures for a sample of firms between 1992 and 1996 indicates that tax preferences are substantially higher than accounting-based measures suggest.

scholarly journals Can Fixed Asset Liquidation Values Predict Stock Market Returns?

2011 ◽  
Vol 8 (6) ◽  
Author(s):  
T. Maurice Lockridge ◽  
Gary Saunders ◽  
Uma Sridharan
Keyword(s):  
Decision Making ◽  
Stock Market ◽  
Financial Reporting ◽  
Value Relevance ◽  
Market Returns ◽  
Stock Market Returns ◽  
Fixed Assets ◽  
Current Value ◽  
The Relationship

This study raises the issue of current value-based measurements of long-term assets from a different perspective. The usefulness of the liquidation value of a firms fixed assets for decision making purposes (through value-relevance) is demonstrated. By showing a relationship between the liquidation value of a firms fixed assets and the firms market return, this study will contribute to the existing accounting and finance literature by raising the issue of current value based measurements of long-term assets from a different perspective. Additionally, it provides additional evidence for consideration of long-term asset valuation in todays context of the planned United States GAAP convergence with International Financial Reporting Standards (IFRS). IFRS allows the use of current value and the liquidation value of a firms fixed assets is one measure of current value.This study examines the relationship between the liquidation values of a firms fixed assets and the firms stock market returns. The significance of this relationship is demonstrated by comparing it with the relationship between the book value of a firms fixed assets and the firms stock market returns. A stronger, or enhanced, relationship for liquidation values to stock market returns indicates its usefulness for decision making purposes.

Relationship between Foreign Portfolio Investments (FPI), Domestic Institutional Investors, and Stock Market Returns in India

GIS Business ◽  
2017 ◽  
Vol 12 (6) ◽  
pp. 1-9
Author(s):  
Dhananjaya Kadanda ◽  
Krishna Raj
Keyword(s):  
Stock Market ◽  
Institutional Investors ◽  
Negative Relationship ◽  
Trading Strategies ◽  
Market Returns ◽  
Stock Market Returns ◽  
Foreign Portfolio Investment ◽  
Stock Market Return ◽  
Indian Stock Market ◽  
Feedback Trading

The present article attempts to understand the relationship between foreign portfolio investment (FPI), domestic institutional investors (DIIs), and stock market returns in India using high frequency data. The study analyses the trading strategies of FPIs, DIIs and its impact on the stock market return. We found that the trading strategies of FIIs and DIIs differ in Indian stock market. While FIIs follow positive feedback trading strategy, DIIs pursue the strategy of negative feedback trading which was more pronounced during the crisis. Further, there is negative relationship between FPI flows and DII flows. The results indicate the importance of developing strong domestic institutional investors to counteract the destabilising nature FIIs, particularly during turbulent times.

Causal Relationships and Short-Term Dynamics Between Oil Price and Stock Market Returns in Malaysia

2020 ◽  
Vol 24 (02) ◽  
pp. 1184-1204
Author(s):  
Arif Rasheed ◽  
Mitra Saeedi ◽  
Nalini Gebril ◽  
Kumaraseh Hariraj
Keyword(s):  
Stock Market ◽  
Oil Price ◽  
Causal Relationships ◽  
Market Returns ◽  
Short Term ◽  
Stock Market Returns

Media Coverage of Corporate Governance Scandals and Stock Market Returns

2011 ◽  
Author(s):  
Raymond Siu Yeung Chan ◽  
See Tin Tang ◽  
Roy F. Ying ◽  
Sun Wing Tam
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Media Coverage ◽  
Market Returns ◽  
Stock Market Returns
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