Accounting Research Journal: Volume 20 Issue 2

Regulation and the Term of the Risk Free Rate: Implications of Corporate Debt

Martin Lally

This paper examines the appropriate term of the risk free rate to be used by a regulator in price control situations, most particularly in the presence of corporate debt. If the…

Comment on Regulation and the Term of the Risk Free Rate: Implications of Corporate Debt

Jason Hall

Lally (2007) concludes that regulators must estimate the risk‐free rate as the yield‐tomaturity on Government debt with a term‐tomaturity equal to the regulatory period, to ensure…

Rejoinder: Regulation and the Term of the Risk Free Rate: Implications of Corporate Debt

Martin Lally

Hall (2007) challenges a fundamental point in the analysis of Lally (2007) and earlier papers: if the risk free rate within the allowed rate of return matches the regulatory term…

Diffusion of Tax Innovation and Post‐Audit Settlement

Sungsoo Yoon, Seung Won Yoo

This study investigates how a tax agency would assess the liability of a taxpayer who has first adopted a new, controversial tax‐saving scheme, which might be employed by other…

Components of Accruals, Losses and Future Profitability

Hai Wu, Neil Fargher

Recent research examines the implications of components of accruals for future profitability. Because the persistence of earnings varies with the level of company profitability…

Earnings Decomposition and the Persistence of Earnings

Stephen Kean, Peter Wells

Forecasting future period profitability is widely identified as an aim of financial statement analysis, and these forecasts are typically relied upon for the estimation of firm…