Knowledge that Transforms

Revaluation, Asset valuation, Market reaction, Australia

This paper investigates the effects of the 1981 Research and Development (R&D) tax credit, first, by examining the impact of the credit on the level of R&D investment and, second, by estimating the magnitude of the implicit tax created by the credit. The two effects are interrelated because an increase in the level of R&D investment will increase the demand for R&D inputs, thus reducing the pretax rate of return from R&D activity.1 I test the credit's investment effect using a time-series R&D spending model that includes both factors from the industrial organization literature (to control for nontax effects) and an R&D credit usability variable to capture the incentive created by the credit. Previous research has produced mixed evidence on whether the credit had any positive

Kumar N. Sivakumar, Gregory Waymire, The Information Content of Earnings in a Discretionary Reporting Environment: Evidence from NYSE Industrials, 1905-10, Journal of Accounting Research, Vol. 31, No. 1 (Spring, 1993), pp. 62-91

Andrew Alford, Jennifer Jones, Richard Leftwich, Mark Zmijewski, The Relative Informativeness of Accounting Disclosures in Different Countries, Journal of Accounting Research, Vol. 31, Studies on International Accounting (1993), pp. 183-223

Analysts, Analyst forecasts, Stock recommendations, Cultivating management relations

David G. Harris, The Impact of U.S. Tax Law Revision on Multinational Corporations' Capital Location and Income-Shifting Decisions, Journal of Accounting Research, Vol. 31, Studies on International Accounting (1993), pp. 111-140

Auditing, Sampling, Sample Size, Sampling risk

Eli Amir, Trevor S. Harris, Elizabeth K. Venuti, A Comparison of the Value-Relevance of U.S. Versus Non-U.S. GAAP Accounting Measures Using Form 20-F Reconciliations, Journal of Accounting Research, Vol. 31, Studies on International Accounting (1993), pp. 230-264

Inventory valuation, Accounting methods, LIFO adoption, Uncertainty

Fundamental Analysis, Value-relevance, Earnings, Earnings persistence