This paper investigates why LIFO firms have higher reported earnings-price (EP) ratios compared with non-LIFO firms, a result reported by Lee (1988). Observed cross-sectional differences in financial statement variables between LIFO and non-LIFO firms identified by prior research do not explain...

This paper examines the effect of tax planning and earnings management on the relative informativeness of book income and taxable income. We conduct two sets of tests documenting (1) the incremental effect of tax planning and earnings management on the relative informativeness of book and...

This paper examines the effect of tax planning and earnings management on the informativeness of book income and taxable income. We conduct two sets of tests documenting (1) the incremental effect of tax planning and earnings management on the informativeness of book and taxable income and (2)...