Using panel data over 16 years of observations, this study investigates whether deferred tax information serves its main purpose – informing about future tax cash flow. The results show that deferred taxes in fact have short-term cash flow implications. Yet, the estimated magnitude of these...

In contrast to common literature that suggests that trade credit is an extremely expensive source of financing with annual interest rates exceeding 40 percent, this paper argues that the average interest rate of trade credit does not exceed the cost of alternative funds, with estimated average...

This paper provides the first value relevance analysis of deferred tax disclosures under IFRS/IAS. The comprehensive analysis, taking into account the different deferred tax components, shows that investors generally do not consider deferred taxes to convey relevant information for assessing...

Purpose – In contrast to common literature that suggests that trade credit is an extremely expensive source of financing with annual interest rates exceeding 40 percent, this paper seeks to argue that the average interest rate of trade credit does not exceed the cost of alternative funds,...

Purpose – In contrast to common literature that suggests that trade credit is an extremely expensive source of financing with annual interest rates exceeding 40 percent, this paper seeks to argue that the average interest rate of trade credit does not exceed the cost of alternative funds,...