Changes in Tax Footnote Disclosure Quality
研究了1996-2023年美国公司年报中所得税脚注的披露质量，发现其可读性显著提高，且与分析师预测分歧减少相关，表明改善的税务披露具有资本市场效益。
ABSTRACT We examine trends in the disclosure quality of the income tax footnote for US firms in annual 10‐K filings over the period 1996–2023. In contrast to claims by some practitioners and academics that the income tax footnote has become too complex, we document a marked increase in readability. Specifically, our results suggest that, while the quantity of textual disclosure in the income tax footnote has increased over time, the tax footnote has become more readable across several measures of readability. Changes in firm characteristics do not explain the improved trends in readability. We find some evidence suggesting that higher probabilities of IRS scrutiny and shareholder litigation attenuate, but do not reverse, the trends in readability. We also find that the language used in the income tax footnote has become more similar among industry peers over time. Finally, we show that improved tax footnote readability is associated with reduced dispersion in analyst tax forecasts, consistent with improvements in tax disclosure reaping capital market benefits.