Essays in book -tax income differences and analyst forecasts /recommendations

Prior research suggests that book-tax income differences (BTD) relate to both firms' earnings quality and operating performance. In this dissertation, I explore whether and how financial analysts signal the implications of BTD efficiently. This dissertation is comprised of three essays on BTD. The three essays seek to develop a better understanding of how financial analysts utilize information reflected in BTD (derived from the ratio of taxable income to book income). The first essay is a review and discussion of prior research regarding BTD. The second essay of this dissertation investigates the role of BTD in indicating the consensus and dispersion of analyst recommendations. I find that sell recommendations are positively related to BTD. I also document that analyst coverage has a positive effect on the standard deviation of consensus recommendations with respect to BTD. The third essay is an empirical analysis of analysts' forecast optimism, analyst coverage, and BTD. I find a negative association between forecast optimism and BTD. My results are consistent with a larger BTD being associated with less forecast bias. Overall, I interpret the sum of the evidence as being consistent with BTD reflecting information about earnings quality, and consistent with analysts examining and using this information in making decisions regarding both forecasts and recommendations.

Virgilio Piñera: Poetry, Nation, and Differences, Book Presentation by Author Jesús E. Jambrina

This flyer promotes the event "Virgilio Piñera: Poetry, Nation, and Differences, Book Presentation by Author Jesús E. Jambrina" and is part of the SIPA at Books & Books series. Hosted at Books & Books in Coral Gables.

Sales tax enforcement: An empirical analysis of compliance enforcement methodologies and pathologies

Most research on tax evasion has focused on the income tax. Sales tax evasion has been largely ignored and dismissed as immaterial. This paper explored the differences between income tax and sales tax evasion and demonstrated that sales tax enforcement is deserving of and requires the use of different tools to achieve compliance. Specifically, the major enforcement problem with sales tax is not evasion: it is theft perpetrated by companies that act as collection agents for the state. Companies engage in a principal-agent relationship with the state and many retain funds collected as an agent of the state for private use. As such, the act of sales tax theft bears more resemblance to embezzlement than to income tax evasion. It has long been assumed that the sales tax is nearly evasion free, and state revenue departments report voluntary compliance in a manner that perpetuates this myth. Current sales tax compliance enforcement methodologies are similar in form to income tax compliance enforcement methodologies and are based largely on trust. The primary focus is on delinquent filers with a very small percentage of businesses subject to audit. As a result, there is a very large group of noncompliant businesses who file on time and fly below the radar while stealing millions of taxpayer dollars. ^ The author utilized a variety of statistical methods with actual field data derived from operations of the Southern Region Criminal Investigations Unit of the Florida Department of Revenue to evaluate current and proposed sales tax compliance enforcement methodologies in a quasi-experimental, time series research design and to set forth a typology of sales tax evaders. This study showed that current estimates of voluntary compliance in sales tax systems are seriously and significantly overstated and that current enforcement methodologies are inadequate to identify the majority of violators and enforce compliance. Sales tax evasion is modeled using the theory of planned behavior and Cressey’s fraud triangle and it is demonstrated that proactive enforcement activities, characterized by substantial contact with non-delinquent taxpayers, results in superior ability to identify noncompliance and provides a structure through which noncompliant businesses can be rehabilitated.^

The Effect of Authentic Literacy Experiences as Book Buddies with Hispanic Fourth Graders on Preservice Teachers’ Literacy Content Knowledge and Reading Maturity

From a sociocultural perspective, individuals learn best from contextualized experiences. In preservice teacher education, contextualized experiences include authentic literacy experiences, which include a real reader and writer and replicate real life communication. To be prepared to teach well, preservice teachers need to gain literacy content knowledge and possess reading maturity. The purpose of this study was to examine the effect of authentic literacy experiences as Book Buddies with Hispanic fourth graders on preservice teachers’ literacy content knowledge and reading maturity. The study was a pretest/posttest design conducted over 12 weeks. Preservice teacher participants, the focus of the study, were elementary education majors taking the third of four required reading courses in non-probabilistic convenience groups, 43 (n = 33 experimental, n = 10 comparison) Elementary Education majors. The Survey of Preservice Teachers’ Knowledge of Teaching and Technology (SPTKTT), specifically designed for preservice teachers majoring in elementary or early childhood education and the Reading Maturity Survey (RMS) were used in this study. Preservice teachers chose either the experimental or comparison group based on the opportunity to earn extra credit points (experimental = 30 points, comparison = 15). After exchanging introductory letters preservice teachers and Hispanic fourth graders each read four books. After reading each book preservice teachers wrote letters to their student asking higher order thinking questions. Preservice teachers received scanned copies of their student’s unedited letters via email which enabled them to see their student’s authentic answers and writing levels. A series of analyses of covariance were used to determine whether there were significant differences in the dependent variables between the experimental and comparison groups. This quasi-experimental study tested two hypotheses. Using the appropriate pretest scores as covariates for adjusting the posttest means of the subcategory Literacy Content Knowledge (LCK), of the SPTKTT and the RMS, the mean adjusted posttest scores from the experimental group and comparison group were compared. No significant differences were found on the LCK dependent variable using the .05 level of significance, which may be due to Type II error caused by the small sample size. Significant differences were found on RMS using the .05 level of significance.