Brazilian Listed Firms' Deferred Tax Data for Big Bath Analysis, 2011-2015

226 Brazilian listed firms were analyzed for the 2011-2015 period to investigate earnings management. The study by Alex Augusto Timm Rathke provides evidence that loss-making firms disclose higher excesses of net deferred tax expenses, suggesting a 'big bath' strategy. A linear model and two-stage least squares were used to estimate deferred tax excess and control for omitted variables bias.

Use Cases

• Testing hypotheses about 'big bath' earnings management strategies based on deferred tax expenses.
• Analyzing the relationship between firm losses and reported deferred tax excesses as described in the study.
• Modeling deferred tax behavior under accounting standard CPC32/IAS 12 using the proposed linear estimation framework.

Strengths

• Analysis covers 226 Brazilian listed firms.
• Data spans a 5-year period from 2011 to 2015.
• The research methodology includes two-stage least squares to control for omitted variables bias.

Limitations

• Column-level documentation is absent; field semantics must be inferred after download.
• Row count is unknown, which may limit suitability assessment.
• Data may reflect geographic and temporal bias inherent to the study's scope.

Provenance

Source

Alex Augusto Timm Rathke

Collection Method

Research analysis of financial data from Brazilian listed firms, using linear modeling and two-stage least squares.

Time Range

2011-2015

Geography

Brazil