An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Timothy J. Fogarty
Case Western Reserve University

Mira Weiss
Case Western Reserve University

Abstract: Starting in January 2003, the Securities and Exchange Commission mandated after-tax return information by mutual funds. Although some of the key components of the determination of investor tax liability were available in the past, these components did not seem to be useful to investors. Using an experiment that manipulated the size of the information package, this paper shows that only some of the newly required information was useful. After-tax rate of return is an important piece of information. However, more detailed information pertaining to the determination of tax liability was not particularly demanded or used.

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