search query: @author Kang, S. / total: 6
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| Author: | Kang, S. |
| Title: | A conceptual framework for the stock price effects of LIFO tax benefits |
| Journal: | Journal of Accounting Research
1993 : SPRING, VOL. 31, p. 50-61 |
| Index terms: | SHARE PRICES TAXATION ACCOUNTING |
| Language: | eng |
| Abstract: | Inflation increases nominal revenues and expenses, as well as nominal tax deductions and relative tax benefits of LIFO. The basic assumption of this paper is that such nominal gains will "wash out" in real terms, and that as a result , greater LIFO tax savings do not increase the firm's value once the effect of inflation is taken into account. The author models a FIFO firm contemplating a costly accounting change to preserve the LIFO tax savings and find that, if inflation is neutral, an unanticipated increase in inflation reduces firm values. |
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