This study examines the usefulness of interim income tax disclosures in predicting future earnings and analysts' forecast errors. The integral view of interim financial reporting requires managers to make their best estimate of the effective income tax rate expected to be in effect for the year....

This study examines whether managerial forecasts of annual effective tax rates, disclosed in interim financial statements, are useful in predicting future quarterly earnings, are incorporated in financial analysts' forecasts of quarterly earnings, or are impounded in stock prices. The integral...

Purpose –The purpose of this study is to re-examine the relation between changes in profit margin (?PM) and changes in return on net operating assets (?RNOA) by partitioning on the direction of the change in PM. DuPont analysis provides a means of disaggregating a firm’s return on net...

<heading id="h1" level="3" format="inline" implicit="no">Abstract: </heading>We use the provisions of "SFAS No. 109", "Accounting for Income Taxes", to examine the extent to which stock prices of Internet firms were associated with expectations of future profitability before versus after the 'market correction' in early 2000. We find that the valuation of...