Da phuk?
https://onlinelibrary.wiley.com/doi/10.1111/jofi.13164
Taxes and the timing of corporate capital expenditures, Michael R Kinney, Robert H Trezevant, The Journal of the American Taxation Association
2022 JF Paper copies 1993 B journal paper
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JF: "This paper documents tax-minimizing investment, whereby firms tilt capital purchases toward fiscal year-end to reduce taxes."
B: "As a result, firms can reduce the net cost of any capital expenditures that can be flexibly timed around the turn of the tax year if they are made late in the current year (year t) rather than early in the following year (year t + 1). Thus, we predict that, ceteris paribus,(1) firms make more capital expenditures in the fourth quarter of year t than in the first quarter of year t + 1."
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Oh there is a penalty alright. JFs will mean less over time. Look at QJE. QJEd written by Harvard/MIT juniors are discounted in the market
This is becoming a pattern in JF. Since there is no penalty at all, except for a thread here, it will keep happening.
yeah right