Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Andrew Finley

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© 2017 Anthony J Ribal


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.


  • Robert Day School Prize for Best Senior Thesis in Economics (Accounting) and Finance

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