Deferred tax arises due to difference in the reported income and taxable income. In India it is not obligatory for corporations to provide for deferred tax which results in mismatch of tax liability and pre-tax income. In this study we look into the incidence of tax deferral due to difference in...

There is substantial differences in the objectives and basis for internal, external and tax reporting. This study looks into how far companies use different accounting policies for different uses. Also an attempt is made to empirically verify whether tax accounting governs the policies for other...

The defective coin problem involves identification of defective coin, if any, and ascertain the nature of the defect (heavier/lighter) from a set of coins containing at the most one defective coin, using an equal-arm pan-balance. The solution strategy to minimise number of weightings required to...

Two alternative specifications of weighted average cost of capital are prevalent in finance literature. Though both the specifications result in consistent accept/reject or ranking decisions the net present value arrived is different under each method. This paper traces the origin of this...

There is considerable literature in the field of finance concerning the valuation of negative cash flows. Consequently, it is widely held that a project should be valued by valuing each component of the project’s cash inflows and outflows separately, either by discounting the cash flowing at...

In this paper we formulate and analyze the quantity discount pricing problem without the approximation that was earlier used by Monahan (3) and Lee and Rosenblatt (2). Our exact analysis throws light on some important conceptual implications of the above approximation. The exact formulation also...

This working paper reports an investigation into the decision making process of individual faced with a set of risky investment opportunities. An experiment was conducted on a set of students and the data generated from the experiment was analyzed. The analysis was done to infer about the...

Theoretical models in finance are many a time based on unrealistic assumptions about the behaviour of individuals. Empirical validation of the models is expected to vindicate the assumptions. However, in most situations, the approaches used for empirical validations suffer from serious...

The paper presents application of Markov Chains to management of leasing. The paper demonstrates that, despite low percentage of bad debts, there could be a significant reduction in the returns earned by a lessor because of delays in payment. Since a lessor typically operates with a very small...

This paper examines the empirical validity of stochastic dominance rules and the mean-variance framework by analysing data generated through an experiment on individual investment decisions under uncertainty. The analyses indicated that none of the two approaches provided adequate explanation...