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|Title:||The market valuation of deferred taxes|
McMaster University, Faculty of Business
|Series/Report no.:||Research and working paper series (McMaster University. Faculty of Business)|
|Abstract:||<p>Three variants of a finite-horizon growth model are developed into regression equations to infer the stock market valuation of tax deferral gains, using approximately 2000 Compustat records from the 1970-75 period. It is concluded that deferred tax credits were recognized as sources of shareholder wealth, but subjected to a discount in comparison to reported earnings and reported equity funds. The expectation of deceleration, depreciation-correction, and price regulation are discussed as potential causes for the discount, and related to the industry-by-industry and year-by-year structure of the regression estimates.</p>|
|Description:||<p>15, 4 p. ; Includes bibliographical references. ;</p>|
|Appears in Collections:||DeGroote School of Business Working Paper Series|
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