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The Fall Of The 10-K Report: Measuring The Impact Of Accounting Ratios On Financial Performance, Matthew Daruty
The Fall Of The 10-K Report: Measuring The Impact Of Accounting Ratios On Financial Performance, Matthew Daruty
CMC Senior Theses
The annual 10-K report has historically been the most important aspect in assessing the position of a publicly held company. However, as the flow of information has increased with the dawn of new technologies, less and less attention has been paid to these audited financial statements. In order to assess if investors are still reacting to the information contained in the annual report, this paper examines the relationship between accounting ratios and stock price in banks traded on United States stock exchanges. By examining accounting ratios instead of simply looking at Earnings Per Share, new information was revealed regarding what …
The Transition Tax: Why It Was Created And How It Could Be Altered, Ryan Motter
The Transition Tax: Why It Was Created And How It Could Be Altered, Ryan Motter
CMC Senior Theses
In this paper, I talk about Section 965, also known as the transition tax, enacted in the Tax Cuts and Jobs Act (TCJA). First, I examine loopholes under the old tax regime that allowed for the accumulation of offshore earnings and how the TCJA closes those loopholes. After detailing the legislation of the transition tax and a comparison with Section 965 included in the American Jobs Creation Act in 2004, I compare firms’ recorded provisions of the transition tax with an estimation based on the past disclosures of firms’ permanently reinvested earnings and finds that the transition tax will generate …
Accounting For Goodwill: The Effectiveness Of Amortization And Impairments Before And After Asc 350, Jessica Cruz
Accounting For Goodwill: The Effectiveness Of Amortization And Impairments Before And After Asc 350, Jessica Cruz
CMC Senior Theses
Prior to the implementation of FAS 142 in 2002, goodwill was amortized annually. Now, companies with goodwill on their books must test it annually for impairment. This paper examines the effectiveness of goodwill amortization and impairment of goodwill both before and after the adoption of FAS 142 by analyzing their effect on abnormal stock returns. My results regarding the effect of goodwill amortization on stock returns are inconsistent, suggesting that goodwill amortization is not useful in determining the value of a company. My results also suggest that the stock market anticipates goodwill impairments before they are announced.