LIFO Inventory Liquidations: An Empirical Study
实证检验了后进先出法（LIFO）的负税效应是否促使管理者避免存货清算，并探讨了经济条件如何超越税务影响，导致部分LIFO企业仍发生清算。
In this study we first investigated the hypothesis that the negative tax effect associated with LIFO inventory liquidations induces managers to avoid liquidations, compared to FIFO firms which do not face such tax incentives. Our results generally supported this hypothesis. We then investigated why all LIFO firms did not avoid inventory liquidations. The results suggest that economic conditions override the tax effects. In the next section we review previous literature in order to develop our hypotheses. Section 3 provides a description of the methods used to estimate inventory liquidations for both LIFO and FIFO firms. Next we describe the sample selection process (section 4), after which we present the results of our statistical tests on the liquidation differences between LIFO and FIFO firms (section 5). Section 6 provides the results of our study of factors which seem to account for the observed LIFO liquidations.