Journal article
THE EFFECTS OF ACCOUNTING REGULATION ON TAX CREDIT UTILIZATION PROPENSITY
Research in accounting regulation, Vol.17(C), pp.39-65
2004
DOI: 10.1016/S1052-0457(04)17003-3
Abstract
This research examines whether the anticipated imposition of the deferral method of accounting for the investment tax credit affected investors perceptions about the propensity of firms to invest in ITC qualifying assets. We find significant negative (positive) abnormal returns associated with events increasing (decreasing) the probability of the mandated accounting change. Additionally, we find a significant association between these returns and variables measuring potential changes in future investment and proximity to debt covenant constraints. These results have implications for policymakers because they indicate that investors expected the proposed accounting regulation to mitigate the stimulative effects of the tax credit.
Details
- Title: Subtitle
- THE EFFECTS OF ACCOUNTING REGULATION ON TAX CREDIT UTILIZATION PROPENSITY
- Creators
- Thomas J. LinsmeierThomas J. Carroll
- Resource Type
- Journal article
- Publication Details
- Research in accounting regulation, Vol.17(C), pp.39-65
- DOI
- 10.1016/S1052-0457(04)17003-3
- ISSN
- 1052-0457
- eISSN
- 2467-9895
- Publisher
- Elsevier Ltd
- Number of pages
- 27
- Language
- English
- Date published
- 2004
- Academic Unit
- Accounting
- Record Identifier
- 9984962895502771
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