The nature of deferred income taxes arising from differences in depreciation methods
type: CreativeWork
description: This research is an investigation into the underlying nature of deferred tax balances. The investigation entails obtaining evidence about whether markets treat changes in these balances that arise from depreciation differences as changes in debt or equity. This is accomplished by relating changes in firm systematic risk to discounted measures of those changes. If deferred tax balances are in the nature of debt (equity), then increases in these balances should be associated with increases (decreases) in systematic risk. Further, market association is hypothesized to be conditional on the way these changes arose: whether from accounting method selection or from tax law changes.
abstract: This research is an investigation into the underlying nature of deferred tax balances. The investigation entails obtaining evidence about whether markets treat changes in these balances that arise from depreciation differences as changes in debt or equity. This is accomplished by relating changes in firm systematic risk to discounted measures of those changes. If deferred tax balances are in the nature of debt (equity), then increases in these balances should be associated with increases (decreases) in systematic risk. Further, market association is hypothesized to be conditional on the way these changes arose: whether from accounting method selection or from tax law changes.
author: Callaghan, Joseph Henry
language: eng
keywords: Business Administration, Accounting
date published: 2011-05-07T13:58:46Z
date modified: 2026-07-22T22:25:21Z
provider: University of Illinois - Urbana-Champaign
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Illinois at Urbana-Champaign

PropertyValue
property ID: Handle
value: http://hdl.handle.net/2142/23005