‘Street’ effective tax rates are more useful in predicting companies' future tax outcomes, recent study by Erik Beardsley finds.

Street earnings metrics such as street ETRs are becoming more and more common, but regulators like the SEC are concerned that non-GAAP metrics can be misleading to readers of financial statements,” Beardsley said. “Our study should be informative to regulators and users of financial statements because it provides evidence that street ETRs are useful. 

For more, visit https://mendoza.nd.edu/news/street-effective-tax-rates-are-more-useful-in-predicting-companies-future-tax-outcomes-study-finds/