Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Georgia Tech Financial Analysis Lab Releases Latest Report

06.02.2009
In the latest report from the Georgia Tech Financial Analysis Lab, located in the College of Management, Professor Charles Mulford warns of increased tax payment risks to capital-intensive companies. He identifies companies that may be facing increased taxes from a reduction in capital spending that may arise from the slowing economy.

According to the report, firms that reduce their capital spending could see increased tax payments.

Mulford says the situation is part of the consequences of deferred tax liabilities. The risks occur when capital expenditures are reduced, resulting in reductions in deferred tax liabilities. Income taxes, which were deferred in previous periods, come due, resulting in higher tax payments.

To view the report please visit: http://mgt.gatech.edu/fac_research/centers_initiatives/finlab/index.html

Such increased tax payments may occur during difficult economic times as companies respond to slack demand by reducing capital spending.

“Cash flow is the lifeblood of any company,” said Mulford. “During a recession, investors and creditors become understandably concerned about the ability of companies to generate cash. Unexpected increases in tax payments, which can arise as companies reduce their capital spending, can threaten cash flow and hurt corporate financial well being.”

The lab conducted research using 2007 data to identify capital-intensive firms with significant deferred tax liabilities. The report then splits these firms into two groups: firms with increasing capital expenditures and deferred tax liabilities and firms with decreasing capital expenditures and deferred tax liabilities.

According to Mulford, all of the firms could be at risk for increased tax payments during an extended period of reduced capital expenditures. However, the firms in the latter group are more likely to have higher tax payments. Investors may not be expecting such high tax payments, especially during a recession.

To view the complete report: http://mgt.gatech.edu/fac_research/centers_initiatives/finlab/index.html

Matt Nagel | Newswise Science News
Further information:
http://www.gatech.edu

More articles from Business and Finance:

nachricht Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik

nachricht RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: First evidence on the source of extragalactic particles

For the first time ever, scientists have determined the cosmic origin of highest-energy neutrinos. A research group led by IceCube scientist Elisa Resconi, spokesperson of the Collaborative Research Center SFB1258 at the Technical University of Munich (TUM), provides an important piece of evidence that the particles detected by the IceCube neutrino telescope at the South Pole originate from a galaxy four billion light-years away from Earth.

To rule out other origins with certainty, the team led by neutrino physicist Elisa Resconi from the Technical University of Munich and multi-wavelength...

Im Focus: Magnetic vortices: Two independent magnetic skyrmion phases discovered in a single material

For the first time a team of researchers have discovered two different phases of magnetic skyrmions in a single material. Physicists of the Technical Universities of Munich and Dresden and the University of Cologne can now better study and understand the properties of these magnetic structures, which are important for both basic research and applications.

Whirlpools are an everyday experience in a bath tub: When the water is drained a circular vortex is formed. Typically, such whirls are rather stable. Similar...

Im Focus: Breaking the bond: To take part or not?

Physicists working with Roland Wester at the University of Innsbruck have investigated if and how chemical reactions can be influenced by targeted vibrational excitation of the reactants. They were able to demonstrate that excitation with a laser beam does not affect the efficiency of a chemical exchange reaction and that the excited molecular group acts only as a spectator in the reaction.

A frequently used reaction in organic chemistry is nucleophilic substitution. It plays, for example, an important role in in the synthesis of new chemical...

Im Focus: New 2D Spectroscopy Methods

Optical spectroscopy allows investigating the energy structure and dynamic properties of complex quantum systems. Researchers from the University of Würzburg present two new approaches of coherent two-dimensional spectroscopy.

"Put an excitation into the system and observe how it evolves." According to physicist Professor Tobias Brixner, this is the credo of optical spectroscopy....

Im Focus: Chemical reactions in the light of ultrashort X-ray pulses from free-electron lasers

Ultra-short, high-intensity X-ray flashes open the door to the foundations of chemical reactions. Free-electron lasers generate these kinds of pulses, but there is a catch: the pulses vary in duration and energy. An international research team has now presented a solution: Using a ring of 16 detectors and a circularly polarized laser beam, they can determine both factors with attosecond accuracy.

Free-electron lasers (FELs) generate extremely short and intense X-ray flashes. Researchers can use these flashes to resolve structures with diameters on the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

Leading experts in Diabetes, Metabolism and Biomedical Engineering discuss Precision Medicine

13.07.2018 | Event News

Conference on Laser Polishing – LaP: Fine Tuning for Surfaces

12.07.2018 | Event News

11th European Wood-based Panel Symposium 2018: Meeting point for the wood-based materials industry

03.07.2018 | Event News

 
Latest News

Global study of world's beaches shows threat to protected areas

19.07.2018 | Earth Sciences

New creepy, crawly search and rescue robot developed at Ben-Gurion U

19.07.2018 | Power and Electrical Engineering

Metal too 'gummy' to cut? Draw on it with a Sharpie or glue stick, science says

19.07.2018 | Materials Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>