We provide new evidence about how analysts incorporate and improve on management ETR forecasts. Quarterly ETR reporting under the integral method provides mandatory point-estimate forecasts by management, but firms must record certain “discrete” tax items fully in the quarter they occur,...

Does using earnings management to meet or beat analysts' forecasts decrease the market reward to achieving this target? We use changes in effective tax rates from the third to the fourth quarter to estimate managed earnings, following and extending Dhaliwal, Gleason and Mills (2004). We...

Prior research finds little substantial discount for managing earnings to beat analysts' consensus forecasts, but at the earnings announcement date a minority of firms disclose balance sheet data needed to estimate abnormal accruals. We consider whether the market reward for beating the forecast...

This paper studies the reliability of mandatory contingent liability disclosure. Contingent liabilities introduce substantial uncertainty about future earnings and the value of the firm, but little public data are available on the demands by external claimants. We use confidential audit...

The recent economic downturn resulted in firms generating significant tax losses, which they risked losing if they experienced an ownership change. In response, a number of loss firms adopted poison pill plans. We document a significant negative market reaction to the announcement of 62 poison...

Prior studies attribute the turn-of-the-year effect whereby small capitalization stocks earn unusually high returns in early January to tax-loss-selling by individual investors and window-dressing by institutional investors. My results suggest that a significant portion of the effect on...

Prior studies attribute the turn-of-the-year effect whereby small capitalization stocks earn unusually high returns in early January to tax-loss-selling by individual investors and window-dressing by institutional investors. My results suggest that a significant portion of the effect on...

Prior research predicts a positive relation between expected rates of return and investor-level tax rates. We provide new theory that predicts that lower liquidity amplifies and higher liquidity attenuates this positive relation. We empirically test our prediction using the cuts to individual...