Assistant Accounting Professor Publishes Company Tax Disclosure Research

Assistant Accounting Professor Publishes Company Tax Disclosure Research

By Daniel Coats ’15,’18

Sabrina Chi, an assistant professor of accounting at Cal State Fullerton’s Faculty of Enterprise and Economics, examines necessary and voluntary company tax disclosures in her examine “A Story of Two Forecasts: An Evaluation of Obligatory and Voluntary Efficient Tax Price Forecasts,” which was co-authored by accounting college at UC Irvine and the College of Houston and can seem within the prestigious high tier A+ ranked journal The Accounting Assessment, the flagship journal of The American Accounting AffiliationChi additionally introduced this paper to the Securities and Alternate Fee (SEC) Workplace of Chief Accountant. Analysts at Credit score Suisse Group AG mentioned institutional particulars with Chi in preparation for the examine.

Utilizing administration issuing each necessary and voluntary ETR forecast because the setting, Chi finds that if necessary disclosure is noisy – trade jargon for when necessary disclosures are unstable and never exact – managers voluntarily present extra, often useful, info to analysts. This voluntary info is then extra informative than the knowledge that was required.

Nonetheless, when necessary disclosures are exact or when voluntary disclosure can also be primarily based on US usually accepted accounting rules (GAAP), Chi’s analysis finds that the usefulness of necessary and voluntary disclosure shouldn’t be totally different to analysts.

Chi’s examine is the primary identified examine wherein each necessary and voluntary disclosures use the identical metric – administration annual ETR forecasts.

CSUF Faculty of Enterprise and Economics college persistently publish in high-ranking journals, whereas additionally bringing real-world utility of their research to the classroom.

From getting ready the following technology of accounting professionals for an AI-driven future to the newest tax tendencies, the Faculty of Accountancy on the Faculty of Enterprise and Economics is a pacesetter in each analysis and educating. For extra on the college, learn our articles on accounting schooling and analysis.