Using Narrative Disclosures to Predict Tax Outcomes. Antonio De Vito (University of Bologna)

FBK-IRVAPP is pleased to invite you to the following seminar: Using Narrative Disclosures to Predict Tax Outcomes .

With the participation of Antonio De Vito (University of Bologna)

Abstract

We examine whether the narrative discussion in financial disclosures can help corporate stakeholders better predict tax outcomes. To measure qualitative discussion, we map the thematic content of 10-K disclosures estimated with topic modeling analysis to the tax planning determinants framework of Wilde and Wilson (2018). We find that qualitative discussion in financial disclosures can substantially improve the prediction of tax outcomes in in- and out-of-sample tests. We further find that prediction-relevant discussion is distributed throughout the 10-K, supporting that disclosures should be analyzed holistically rather than examining only limited pieces of larger disclosures. We also find that analysts struggle to use this information effectively, resulting in substantial and predictable forecast errors. These findings empirically illustrate the wealth of qualitative information in 10-K disclosures for stakeholders concerned about tax outcomes and offer a practical approach to examining qualitative disclosures and using them to predict tax outcomes.

 

The seminar is held in English.

Guest Speakers

  • University of Bologna
    Antonio joined the Alma Mater University of Bologna in 2022. Before moving back to Italy, he wasan assistantprofessor of Accounting at the IE Business School, IE University (Spain). As an assistant professor, he taught several accounting and taxation courses, both at the undergraduate and graduate levels, and won many teaching awards. Before becoming anassistantprofessor, he studied in Germany and receiveda Doctorate in Business and Economics from WHU–Otto Beisheim School of Management.His research has been published in top academic journals, presented at international conferences, and featured in various news outlets. Since 2021, he has been a member of the European Accounting Association Conference Scientific Committee. In addition, he has acted as a reviewer for leading academic journals such as the British Journal of Management, European Accounting Review, Accounting and Business Research, Journal of Accounting and Public Policy,Economics Letters, Finance Research Letters, and the European Journal of Political Economy. He is currently a member of the Editorial Boards of theJournal of International Accounting, Auditing, and Taxation, and Accounting in Europe.

Registrazione

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Registration closed on 10/06/2024.

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