This paper proposes a valuation method that addresses the impact of deferred tax balances on a firm's economic profitability and relies on readily-accessible and easily- understood current accounting data, rather than imperfect estimates of future cash flows. This method values a firm's future...

This paper clarifies some of the conflicting arguments about the value relevance of deferred taxes. We address two questions. First, does accounting aggregation hold, or in other words, are deferred tax expense and liability balances valued the same as operating earnings and asset balances,...

We provide evidence regarding the incremental value- relevance of deferred tax information provided under SFAS No. 109. We assess the likelihood of reversal for each component of the deferred tax disclosures required by SFAS No. 109, forming expectations about the direction and magnitude of...

We consider two managers’ sequential disclosure strategies. We show how the lead disclosing firm’s manager chooses his strategy anticipating the subsequent disclosure choice by a second firm’s manager. Prior studies of a single firm offer little insight into how sequential disclosure...