Brailsford, T., Marchesi, D., Tutticci, I. and Simon, A. The Determinants of Shares Repurchase Decisions in On-Market Buy-Backs. Under review: Journal of Contemporary Accounting and Economics [BMTS.pdf]

ABSTRACT: Australian regulations require direct disclosure of repurchase intentions and activity for on market buy-backs. This is the first study to use both firm characteristics and managements’ disclosed reasons for repurchases to explain buy-back activity. Our analysis models both intended and actual buyback activity. Executives’ holdings of options, low growth prospects and firm size consistently explain intended repurchase activity. Managements’ disclosure that the buy-back is undertaken in response to undervaluation, capital restructuring and liquidity also consistently explain intended repurchases. Actual buy-back activity is generally less than the level announced and is only explained by change in EPS and the length of the buyback program in our model.       


Mock, R.P. and Simon, A. 2009. The LIFO, IFRS Conversion: An Explosive Concoction. Tax Notes. Vol. 123. No. 6 [MS2.pdf]

ABSTRACT: Some acronym cocktails make for an explosive combination. As the world’s capital markets trend toward convergence to a single set of accounting standards, U.S. firms may soon be required to use international financial reporting standards rather than generally accepted accounting principles. As this report will illustrate, with billions of corporate dollars at issue, the last-in, first-out inventory accounting method may be the last formidable obstacle in the path of outright conversion by U.S. firms.


Mock, R.P. and Simon, A. 2008. Permanently Reinvested Earnings: Priceless. Tax Notes. Vol. 121. No. 7 [MS1.pdf]

ABSTRACT: In this report, the authors discuss the tax and policy issues associated with repatriation under the American Jobs Creation Act of 2004, P.L. No. 108-357, 118 Stat. 1418 (2004) (Jobs Act), and conduct an extensive survey of the financial statements of the top 81 repatriating multinational corporations. The author’s findings suggest that the rate of repatriation by firms was extremely sensitive to the tax burden associated with repatriation, and the rate was further influenced by industry sector, and the amount of permanently reinvested earnings located in low-tax jurisdictions overseas. The authors’ data results also evidence that firms repatriated qualifying dividends under section 965 at a U.S. effective tax rate lower than the 5.25 percent initially discussed in literature, and suggest that the amount of permanently reinvested earnings by firms only increased after repatriation.