Prior to the 1996 federal budget, child support payments in Canada were deducted from the payer's income and included in the recipient's income. Because the payer's marginal tax rate was usually smaller than the recipient's, the government was providing a subsidy relative to a system without...

This paper formulates a theory of the optimal payment of Canadian corporate income tax instalments (the Canadian counterpart of US monthly payments of quot;estimated taxquot;). The theory incorporates uncertainty because the required amount of instalment payments depends in part upon the amount...

Using an equity valuation model characterized by periodic imperfect accounting information, we examine how financial leverage affects a firm's accounting quality choice (i.e., precision). We find that the existence of financial leverage motivates firms with average to good performance to prepare...

This article looks at how U.S. managers supplement GAAP earnings with pro forma reporting. Pro forma measures, which are not audited, are typically determined through an adjustment to GAAP-based earnings. For example, a manager may choose to present an alternative to GAAP earnings that excludes...