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Deferred Taxes and Bond Ratings: A Canadian Case
Author(s) -
Chattopadhyay S.,
Arcelus F.J.,
Srinivasan G.
Publication year - 1997
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/1468-5957.00120
Subject(s) - bond , bond credit rating , accounting , credit rating , actuarial science , economics , business , finance , credit reference , credit risk
This paper explores the usefulness of the current Canadian Institute of Chartered Accountants standard on accounting for income taxes in bond rating decisions by credit analysts. Bond rating prediction models using accounting variables generated with alternate treatment of income taxes, have been developed. The analysis indicates that additional information presented by the above standard has not contributed significantly to the bond raters' decision making process.