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.

Perceptions of beginning teachers in Florida regarding their preparation as it relates to the Florida Essential Generic Competencies

The purpose of the study is to investigate how beginning teachers in the state of Florida perceive their preparation to demonstrate the 27 Florida Essential Generic Competencies.^ The basic research question of this study was: How do beginning teachers perceive their level of preparation regarding their implementation of the Florida Essential Generic Competencies? This study identified and categorized the perceived degree of preparation for each of the competencies. Also, elementary, middle, and high school beginning teachers were compared to find significant differences and similarities in their perception of their preparation. A comparison was also done for graduates from in-state versus out-of-state and private versus public institutions.^ A survey developed in collaboration with the Department of Education, Florida State University, members of the Professional Orientation Program (POP) Coordinators, and the Project Director of Program Review in the College of Education at the University of South Florida, was sent to 5,076 beginning teachers. A total of 1,995 returned the survey in February of 1993. The Multivariate Analysis of Variance (MANOVA) procedure was used (Alpha =.05). Statistical analysis of the data involved a comparison of the different groups of beginning teachers by school level and kind of graduating institutions. The dependent variables analyzed were the responses to all items representing the generic competencies.^ The study identified and categorized the degree of preparation for each competency. The competencies receiving the lowest ratings for degree of preparation were: integrate computers in instruction; manage situations involving child abuse and/or neglect; severe emotional stress; alcohol and drug abuse.^ The Wilkes lambda and the Hotellings multivariate tests of significance were used to examine the differences among the groups. The competency items were further analyzed by a univariate F test. Results indicated that: (1) significant differences were found in nine competency items in which elementary teachers felt better prepared than middle and high school beginning teachers, (2) graduates from a Florida teacher education program felt they were better prepared in demonstrating the competencies than those from out-of-state schools, and (3) no significant difference was found in the perceptions of those who graduated from public versus private institutions.^ Based on the findings of this study, the following recommendations are made: (1) Florida's institutions responsible for teacher preparation programs need to focus on those competencies receiving the lowest ratings, (2) Districts should provide an orientation program for out-of-state beginning teachers, and (3) The survey instrument should be used annually to evaluate teacher education programs. ^

Ethnic identification: Impact on HIV/AIDS risk among migrant and seasonal workers in South Florida

Migrant workers are one of the most rapidly growing populations in the United States (U.S.) and have been significantly affected by HIV/AIDS. More than 9 million people in the U.S., primarily concentrated in Texas, Florida, Washington, California, Oregon, and North Carolina, are migrant farm workers. High prevalence rates are also suspected among migrant worker communities where risky health behaviors appear to be common. Constant mobility, isolation, limited education, substandard housing, and poverty are some of the factors that migrant workers experience and in many cases increases their HIV risk. Recent studies have suggested that ethnic identity or the level of attachment with one's ethnic group may influence engagement in HIV risk behaviors, a fact that may be important in the development of interventions among ethnic minorities. This study assesses the relationship between ethnic identity and HIV risk behaviors in two different samples; one assesses this relationship at baseline with a total of 431 African American migrant and seasonal workers in Immokalee, Florida. The second analyzes changes in ethnic identity and HIV behaviors in a sample of 270 Hispanic and African American migrant and seasonal workers in Immokalee, Florida. Data from baseline and 6-month follow-up were used in the analyses presented. The results suggest that individuals with higher levels of ethnic identity report lower levels of engagement in some, but not all, of the risky behaviors examined. These findings point to a potentially protective role for ethnic identity among this sample.

Age Differences among Female Sex Workers in the Philippines: Sexual Risk Negotiations and Perceived Manager Advice

Consistent condom use among high risk groups such as female sex workers (FSWs) remains low. Adolescent female sex workers are especially at higher risk for HIV/STI infections. However, few published studies have compared the sexual risk negotiations among adolescent, emerging adult, and older age groups or the extent a manager’s advice about condom use is associated with an FSW’s age. Of 1,388 female bar/spa workers surveyed in the southern Philippines, 791 FSW who traded sex in the past 6 months were included in multivariable logistic regression models. The oldest FSWs (aged 36–48) compared to adolescent FSWs (aged 14–17) were 3.3 times more likely to negotiate condoms when clients refused condom use. However, adolescent FSWs received more advice from their managers to convince clients to use condoms or else to refuse sex, compared to older FSWs. Both adolescent and the oldest FSWs had elevated sexually transmitted infections (STIs) and inconsistent condom use compared to other groups. Having a condom rule at the establishment was positively associated with condom negotiation. Factors such as age, the advice managers give to their workers, and the influence of a condom use rule at the establishment need to be considered when delivering HIV/STI prevention interventions.

Perceptions of beginning teachers in Florida regarding their preparation as it relates to the Florida essential generic competencies

The purpose of the study is to investigate how beginning teachers in the state of Florida perceive their preparation to demonstrate the 27 Florida Essential Generic Competencies. The basic research question of this study was: How do beginning teachers perceive their level of preparation regarding their implementation of the Florida Essential Generic Competencies? This study identified and categorized the perceived degree of preparation for each of the competencies. Also, elementary, middle, and high school beginning teachers were compared to find significant differences and similarities in their perception of their preparation. A comparison was also done for graduates from in-state versus out-of-state and private versus public institutions. A survey developed in collaboration with the Department of Education, Florida State University, members of the Professional Orientation Program (POP) Coordinators, and the Project Director of Program Review in the College of Education at the University of South Florida, was sent to 5,076 beginning teachers. A total of 1,995 returned the survey in February of 1993. The Multivariate Analysis of Variance (MANOVA) procedure was used (Alpha = .05). Statistical analysis of the data involved a comparison of the different groups of beginning teachers by school level and kind of graduating institutions. The dependent variables analyzed were the responses to all items representing the generic competencies. The study identified and categorized the degree of preparation for each competency. The competencies receiving the lowest ratings for degree of preparation were: integrate computers in instruction; manage situations involving child abuse and/or neglect; severe emotional stress; alcohol and drug abuse. The Wilkes lambda and the Hotellings multivariate tests of significance were used to examine the differences among the groups. The competency items were further analyzed by a univariate F test. Results indicated that: (1) significant differences were found in nine competency items in which elementary teachers felt better prepared than middle and high school beginning teachers, (2) graduates from a Florida teacher education program felt they were better prepared in demonstrating the competencies than those from out-of-state schools, and (3) no significant difference was found in the perceptions of those who graduated from public versus private institutions. Based on the findings of this study, the following recommendations are made: (1) Florida's institutions responsible for teacher preparation programs need to focus on those competencies receiving the lowest ratings, (2) Districts should provide an orientation program for out-of-state beginning teachers, and (3) The survey instrument should be used annually to evaluate teacher education programs.

Education, earnings, and rates of return: The case of Taiwan

Educational planners and economists have long recognized the importance of education as a form of productive investment in both advanced countries and developing countries. In the case of Taiwan, along with impressive economic growth, there was an even faster rate of growth of the government's investment in education. This leads some to question whether education has any role in economic development. ^ The purpose of this study is to provide a broad overview of the role of education, in terms of private rates of return to education, in Taiwan. In the process, a variety of hypotheses about human capital theory are examined and an empirical study of Taiwan's earnings functions are tested to show that education can be an important instrument to increase private rate of return, even under conditions of scarcity of natural and physical resources. Data was collected using the Manpower Survey and Manpower Utilization Survey, conducted by the government. Research questions were analyzed using descriptive statistics, frequencies, and regression analysis. ^ Results indicated that the Manpower Development Plans have been the decisive influence in allowing Taiwan to develop its human resources and achieve success in meeting the needs of Taiwan's economy. The structure of age-earnings profiles showed a strong relationship between earnings and education, and the profiles that successively shift upward are associated with higher levels of education. In the cross-sectional results of the rate of return in 1997, each additional year of schooling leads to a 6.2% increase in income. As to the private rates of return to different levels of education, the results found that the private rates of return are 2.88%, 4.85% and 10.05% for primary, secondary and higher education respectively. In an intertemporal comparison for 1980, 1985, 1990 and 1997, the results showed no significant trend except the private rates of return for primary education have been falling from 3.9% to 2.88%. ^ On the basis of this study, for individual student or family in Taiwan, there is likely to be a strong demand for education, particularly at the higher level. Therefore, a well-developed higher educational level becomes essential and the content of curriculum in higher education becomes another crucial question facing planners in Taiwan if they are going to use education as a means to foster economic development. ^

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 Tax Reform Act of 1986: Impact On Hospitality Industries

In her discussion - The Tax Reform Act Of 1986: Impact On Hospitality Industries - by Elisa S. Moncarz, Associate Professor, the School of Hospitality Management at Florida International University, Professor Moncarz initially states: “After nearly two years of considering the overhaul of the federal tax system, Congress enacted the Tax Reform Act of 1986. The impact of this legislation is expected to affect virtually all individuals and businesses associated with the hospitality industry. This article discusses some of the major provisions of the tax bill, emphasizing those relating to the hospitality service industries and contrasting relevant provisions with prior law on their positive and negative effects to the industry. “On October 22, 1986, President Reagan signed the Tax Reform Act of 1986 (TRA 86) with changes so pervasive that a recodification of the income tax laws became necessary…,” Professor Moncarz says in providing a basic history of the bill. Two, very important paragraphs underpin TRA 86, and this article. They should not be under-estimated. The author wants you to know: “With the passage of TRA 86, the Reagan administration achieved the most important single domestic initiative of Reagan's second term, a complete restructuring of the federal tax system in an attempt to re-establish fairness in the tax code…,” an informed view, indeed. “These changes will result in an estimated shift of over $100 billion of the tax burden from individuals to corporations over the next five years [as of this article],” Professor Moncarz enlightens. “…TRA 86 embraces a conversion to the view that lowering tax rates and eliminating or restricting tax preferences (i.e., loopholes) “would be more economically and socially productive.” Hence, economic decisions would be based on economic efficiency as opposed to tax effect,” the author asserts. “…both Congress and the administration recognized from its inception that the reform of the tax code must satisfy three basic goals,” and these goals are identified for you. Professor Moncarz outlines the positive impact TRA 86 will have on the U.S. economy in general, but also makes distinctions the ‘Act will have on specific segments of the business community, with a particular eye toward the hospitality industry and food-service in particular. Professor Moncarz also provides graphs to illustrate the comparative tax indexes of select companies, encompassing the years 1883-through-1985. Deductibility and its importance are discussed as well. The author foresees Limited Partnerships, employment, and even new hotel construction and/or rehabilitation being affected by TRA 86. The article, as one would assume from this type of discussion, is liberally peppered with facts and figures.