Stock Market Valuation of Deferred Tax Assets: Evidence from Internet Firms
<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 deferred tax assets of firms with business models reliant on the level of web site traffic was significantly greater after the market correction. In our view, this evidence is consistent with pre-correction mispricing. Copyright Blackwell Publishers Ltd, 2004.
Year of publication: |
2004-11
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Authors: | Bauman, Mark P. ; Das, Somnath |
Published in: |
Journal of Business Finance & Accounting. - Wiley Blackwell, ISSN 0306-686X. - Vol. 31.2004-11, 9-10, p. 1223-1260
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Publisher: |
Wiley Blackwell |
Saved in:
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