Graduation Year
2017
Date of Submission
12-2016
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics-Accounting
Reader 1
Andrew Finley
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Rights Information
© 2017 Anthony J Ribal
Abstract
I investigate whether management’s decision to release or maintain the valuation allowance for deferred tax assets provides incremental information regarding pretax earnings growth in the following earnings period. I classify firm-years into two categories; valuation allowance release firm-years and valuation allowance maintain firm-years. The results of this study suggest that a release of the valuation allowance in the current period is positively associated with pretax earnings growth in the following period. This paper also studies whether a release of the valuation allowance yields increased external monitoring, and finds evidence that suggests an association.
Recommended Citation
Ribal, Anthony James, "The Relation Between a Deferred Tax Valuation Allowance Release and Earnings Growth and External Monitoring" (2017). CMC Senior Theses. 1526.
https://scholarship.claremont.edu/cmc_theses/1526
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
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