Journal article
The Relevance of Non-Income Tax Relief
Contemporary accounting research, Vol.39(3), pp.1797-1833
10/01/2022
DOI: 10.1111/1911-3846.12781
Appears in UI Libraries Support Open Access
Abstract
Governments regularly offer non-income tax relief to attract business investment. However, it is unclear whether or how markets impound information about the relief into security prices. We use novel data from retrospective public records to examine the information content of non-income tax relief. We predict and find that the receipt and magnitude of this relief are both strongly associated with recipients' future accounting performance and future abnormal returns. We further find that abnormal returns associated with the relief cluster around future earnings information events. In combination, this evidence suggests that non-income tax relief is value-relevant but is incorporated into prices over time.
Details
- Title: Subtitle
- The Relevance of Non-Income Tax Relief
- Creators
- Michael S. Drake - Brigham Young UniversityRyan Hess - Oklahoma State UniversityJaron H. Wilde - University of IowaBraden M. Williams - Univ Texas Austin, Austin, TX 78712 USA
- Resource Type
- Journal article
- Publication Details
- Contemporary accounting research, Vol.39(3), pp.1797-1833
- DOI
- 10.1111/1911-3846.12781
- ISSN
- 0823-9150
- eISSN
- 1911-3846
- Publisher
- Wiley
- Number of pages
- 37
- Grant note
- Arthur Andersen Fellowship
- Language
- English
- Date published
- 10/01/2022
- Academic Unit
- Accounting
- Record Identifier
- 9984380546602771
Metrics
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