Stable book-tax differences, prior earnings, and earnings persistence |
Posted on:2012-10-03 | Degree:Ph.D | Type:Dissertation |
University:University of North Texas | Candidate:Racca, Joshua C | Full Text:PDF |
GTID:1459390008998040 | Subject:Business Administration |
Abstract/Summary: | |
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. |
Keywords/Search Tags: | Book-tax, Earnings, Firms with large |
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