CPE SESSION 27 - Wednesday, 1:00 PM - 4:00 PM

Taxes & Asset Prices

Description/Objectives:
This session will explore the background and development of research examining the impact of taxes on asset prices. The question of whether and to what extent taxes are capitalized into asset prices has received considerable attention recently and has generated much debate. Professors Guenther and Shevlin will discuss the theoretical underpinnings of the research and related research in other disciplines as well as recent work in the tax accounting areas. The session is intended to allow those who are considering pursuing such research, or who would like to become more educated consumers of the research, to familiarize themselves with the area.

Format/Structure:
The session will first cover the background of the potential impact of taxes on asset prices and the underlying finance and tax theories from which the issues are derived.

It will then review research examining taxes and asset prices.

Recent research in the tax accounting area, both providing evidence of full incorporation of taxes into share prices and refuting such evidence, will then be reviewed. The goal will be to (1) relate them back to the prior theory and research, (2) summarize the findings, and (3) identify any empirical and/or theoretical issues related to them.

Finally, the session will allow for questions and discussion from attendees, including those who have done research in the area.

Intended Audience:
The workshop is intended for Accounting Ph.D. students and researchers interested in a primer on research into the impact of taxes on asset prices. Those considering pursuing research in the area as well as those interested in becoming more educated consumers of the research, or considering incorporating related issues into their classes, should find it useful.

Presenters:
Terry Shevlin, University of Washington
David A. Guenther, University of Colorado

Sponsor:
American Taxation Association