REVISION: Tax Planning by Mutual Funds: Evidence from Changes in the Capital Gains Tax Rate
Date Posted:
Sep 14,
2010
We investigate whether mutual funds engage in tax planning by testing how they respond to changes in the capital gains tax rates. While previous evidence suggests that individual investors time capital gains realizations, mutual fund managers may not tax plan like individuals because fund managers have incentives to consider the tax liability of both current and potential investors. Our analysis spans over forty-four years, and six major tax changes, allowing us to examine the effect of both ...
New: The Predictive Role of Analyst Coverage Intensity: Evidence from Cross-Listing in the U.S.
Date Posted:
Sep 11,
2008
This paper investigates financial analysts' predictive power of future performance and earnings quality, based on their selective coverage of firms that have recently cross-listed into the U.S. This setting is useful for examining these questions because, following cross-listing, firms often experience an increase in analyst coverage and an improvement in their information environment. We find that analyst coverage is positively related to analysts' expectation about firms' future performance ...
REVISION: The Predictive Role of Analyst Coverage Intensity: Evidence from Cross-Listing in the U.S.
Date Posted:
Sep 07,
2008
This paper investigates financial analysts' predictive power of future performance and earnings quality, based on their selective coverage of firms that have recently cross-listed into the U.S. This setting is useful for examining these questions because, following cross-listing, firms often experience an increase in analyst coverage and an improvement in their information environment. We find that analyst coverage is positively related to analysts' expectation about firms' future performance ...
Tax Planning by Mutual Funds
Date Posted:
Jun 26,
2007
In this paper we investigate whether mutual fund managers engage in tax planning by testing whether they time securities sales in their funds in response to changes in capital gains tax rates. Although previous evidence suggests that individuals investors engage in this shifting behavior (Auerbach [1988]), open-end mutual funds cannot necessarily be expected to tax plan like individuals because fund managers have incentives to consider the tax liability of both current investors and potential ...
REVISION: The Effect of Reporting Frequency on the Timeliness of Earnings: The Cases of Voluntary and Mandator
Date Posted:
Jan 04,
2007
We examine whether financial reporting frequency affects the speed with which accounting information is reflected in security prices. For a sample of 28,824 reporting-frequency observations from 1950 to 1973, we find little evidence of differences in timeliness between firms reporting quarterly and those reporting semiannually, even after controlling for self-selection. However, firms that voluntarily increased reporting frequency from semiannual to quarterly experienced increased timeliness, ...
Changes in the Value-Relevance of Earnings and Book Values over the Past Forty Years
Date Posted:
Apr 27,
2000
This paper investigates systematic changes in the value-relevance of earnings and book values over time. We report three primary findings. First, contrary to claims in the professional literature, the combined value-relevance of earnings and book values has not declined over the past forty years and, in fact, appears to have increased slightly. Second, while the incremental value-relevance of "bottom line" earnings has declined, it has been replaced by increasing value-relevance of book values.