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Research in Accounting for Income Taxes

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  • John Graham
  • Jana Raedy
  • Douglas Shackelford

Abstract

This paper comprehensively reviews Accounting for Income Taxes (AFIT). The first half provides background and a primer on AFIT. The second half reviews existing studies in detail and offers suggestions for future research. We emphasize the research questions that have been addressed (most of which relate to whether the tax accounts are used to manage earnings, and whether the tax accounts are priced by equity market participants) and highlight areas that have not received much research attention. We close with a call for a theoretical framework, more study of the inconsistencies between research and practice, and improved econometrics.

Suggested Citation

  • John Graham & Jana Raedy & Douglas Shackelford, 2010. "Research in Accounting for Income Taxes," NBER Working Papers 15665, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:15665
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    More about this item

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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