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This study examines the impact of FASB Interpretation No. 48 (FIN48), Accounting for Uncertainty in Income Taxes, on earnings management (EM) activity, by focusing on changes in the deferred tax asset valuation allowance (DTVA). FIN48 was adopted, in part, over concerns that firms were using the reserve for uncertain tax positions (cushion) to manage earnings. However, there are reasons to believe that the adoption of FIN48 may have impacted the extent to which firms utilize DTVA changes as a strategic accounting choice. As the provision for income taxes is one of the final accounts closed prior to an earnings announcement, income tax accounting is generally regarded as a final opportunity to strategically meet earnings goals. To the extent that FIN48 reduced cushion-based EM, firms may have increasingly used DTVA changes as a substitute. Alternatively, the attention that FIN48 brought to firms’ income tax footnotes may have curbed the strategic use of income tax accounting, in general. This study employs a sample of publicly traded US firms over the period of 2003–2010. A regression model and an analysis of the frequency of DTVA-based EM reveal no evidence of a systematic change in behavior attributable to FIN48. However, further analysis reveals that firms identified as managing earnings to meet analyst forecasts increasingly used discretionary DTVA changes relative to changes in tax cushion in the post-FIN48 period. The results have implications for existing research on income tax-based EM.

Extant research examining the determinants of deferred tax asset valuation allowances finds that the evidence provisions outlined in SFAS 109 explain a significant portion of both levels of and changes in recorded valuation allowances. In addition, there is evidence of a stock price reaction around the time of announcements of valuation allowance information. The present study extends existing research in two ways. First, extant research on determinants of valuation allowance changes does not incorporate the asymmetry in the evidence provisions of SFAS 109. Accordingly, we separately examine the determinants of increases versus decreases in valuation allowances and find that the evidence provisions of SFAS 109 explain a much greater portion of valuation allowance increases than decreases. Second, we examine the association between annual stock returns and reported earnings resulting from valuation allowance changes. While the earnings effect of valuation allowance changes is found to be significant in the expected direction, the stock price reactions do not occur in the period the earnings effect is reported. This is consistent with low earnings “quality” under SFAS 109.

Outlines the role of the conservatism inherent in generally accepted accounting principles in Ohlson’s (1995) and Feltham and Ohlson’s (1995) valuation models and compares it with other research findings. Identifies potential sources of conservatism (e.g. expensing advertising costs, providing for deferred tax etc.), develops a mathematical model and applies it to 1980‐1994 US data to examine their relative importance. Finds that intensity of R&D and age of fixed assets are the most significant and goes on to compare the effectiveness of the Feltham/Ohlson conservatism parameter in capturing this information. Shows that their linear information models seems to capture different aspects of the relationship between book and market values and calls for further research.

This study examines the market valuation of the unearned revenue liability reported by a sample of newspaper and magazine publishers. The evidence indicates that stock prices behave as if the unearned revenue liability represents an economic asset overall. It is further shown that the market valuation of the unearned revenue “asset” is increasing in the magnitude of advertising relative to circulation revenue. After controlling for advertising revenue inflows, reported unearned revenue is negatively related to stock price, indicating that the economic asset is valued in part on its liability characteristics. These results have direct implications for the FASB's current deliberations on revenue and liability recognition.

The purpose of this study is to re-examine the relation between changes in profit margin (ΔPM) and changes in return on net operating assets (ΔRNOA) by partitioning on the direction of the change in PM. DuPont analysis provides a means of disaggregating a firm’s return on net operating assets (RNOA) into asset turnover (ATO) and profit margin (PM) components to gain insights into the underlying drivers of operating profitability. Prior research finds that changes in ATO are informative about one-year-ahead changes in RNOA, while changes in PM are not.

Consistent with prior research, regression analysis is used to develop a predictive model for one-year-ahead changes in RNOA. Results based on in-sample parameter estimates are used to examine the out-of-sample forecasting accuracy of alternative model specifications.

The results are consistent with significant forecast improvement resulting from considering the impact on future RNOA of the direction of the ΔPM.

The study contributes to the literature on the determinants of profitability ratios by providing further guidance on how financial statement information can be utilized to improve forecasts of firm performance.

Zygmunt Bauman was a Senior philosopher who did not need a previous presentation. His theses have shed light on modern philosophy and sociology globally. For Bauman, the liquid modernity should be understood through the lens of a binomial model, grounded on two main figures: vagabonds and tourists. The postmodern society is structured on an extreme social inequality expressed in the bipolar division between two classes: tourists and vagabonds. Each one is determined by a different degree of freedom of choice, which seems to be the cornerstone of postmodern life. The more freedom of choice each class showed the higher its rank in the postmodern social hierarchy. The chapter discusses the weaknesses and strengths in Bauman's reasoning.

Zygmunt Bauman's work is a case study in the possibilities of postmodernism for sociology. Characterized on the one hand by a gloomy epistemology about knowledge and morality in a postmodern world and on the other, by provocative new concepts to empirically describe a postmodern world, Bauman's work evidences a key tension within postmodern thought. Is it possible to reconcile Bauman's pessimistic epistemology with his optimistic sociology? My argument is that if we recast Bauman as a critical theorist and his method as dialectical immanent critique, we can see how his positive empirical concepts are based on his negative epistemology. In this way we can make sense of the complexity of Bauman's work and appreciate his prophetic abilities. The complexities and possibilities of postmodern thought in general become clearer as well.

The mid-1990s marked a paradigm shift in the way physical activity is promoted, and walking is now considered the most suitable type of physical activity for widespread promotion. Accurate measurement underpins public health practice, hence the aims of this chapter are to: (1) provide a typology for the measurement of walking; (2) review methods to assess walking; (3) present challenges in defining walking measures; (4) identify issues in selecting instruments for the evaluation of walking and (5) discuss current efforts to overcome measurement challenges and methodological limitations. The taxonomy of walking indicates that secondary purpose walking is a more complex set of behaviours than primary purpose walks. It has many purposes and no specific domain or intensity, may lack regularity, and therefore poses greater measurement challenges. Objective measurement methods, such as accelerometers, pedometers, smartphones and other electronic devices, have shown good approximation for walking energy expenditure, but are indirect methods of walking assessment. Global Positioning System technology, the ‘Smartmat’ and radio-frequency identification tags are potential objective methods that can distinguish walkers, but also require complex analysis, are costly, and still need their measurement properties corroborated. Subjective direct methods, such as questionnaires, diaries and direct observation, provide the richest information on walking, especially short-term diaries, such as trip records and time use records, and are particularly useful for assessing secondary purpose walking. A unifying measure for health research, surveillance and health promotion would strongly advance the understanding of the impact of walking on health.

This chapter explores theory and local context of socially constructed pandemic fears during COVID-19; how material and non-material fear objects are construed, interpreted and understood by communities, and how fears disrupt social norms and influence pandemic behavioural responses. We aimed to understand the lived experiences of pandemic-induced fears in socioculturally diverse communities in eastern Indonesia in the context of onto-epistemological disjunctures between biomedically derived public health interventions, local world views and causal-remedial explanations for the crisis. Ethnographic research conducted among several communities in East Nusa Tenggara province in Indonesia provided the data and analyses presented in this chapter, delineating the extent to which fear played a decisive role in both internal, felt experience and social relations. Results illustrate how fear emotions are constructed and acted upon during times of crisis, arising from misinformation, rumour, socioreligious influence, long-standing tradition and community understandings of modernity, power and biomedicine. The chapter outlines several sociological theories on fear and emotion and interrogates a post-pandemic future.