Weitere Artikel dieser Ausgabe durch Wischen aufrufen
There is an ongoing debate in the literature about the costs and benefits of conforming book and taxable income. Proponents argue that increased book-tax conformity will reduce aggressive financial reporting: managing earnings up increases taxes and will curtail abusive tax shelters because managing taxes down decreases earnings reported to shareholders. We use a panel of 139,536 firm-year observations across 34 countries over the period 1996–2007 to test whether high levels of book-tax conformity are associated with less earnings management. We find that higher book-tax conformity is associated with significantly more, not less, earnings management. We conclude that one of the primary claimed benefits of increasing book-tax conformity, more truthful financial reporting with less earnings management, is unlikely to be as large as previously thought.
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
Alford, A., Jones, J., Leftwich, R., & Zmijewski, M. (1993). The relative informativesness of accounting disclosures in different countries. Journal of Accounting Research, 31, 183–221.
Ali, A., & Hwang, L. (2000). Country-specific factors related to financial reporting and the value relevance of accounting data. Journal of Accounting Research, 38, 1–21.
Atwood, T., Drake, M., & Myers, L. (2010). Book-tax conformity, earnings persistence and the association between earnings and future cash flows. Journal of Accounting and Economics, 50, 111–125. CrossRef
Bae, K., Tan, H., & Welker, M. (2008). International GAAP differences: The impact on foreign analysts. The Accounting Review, 83, 593–628. CrossRef
Ball, R., Kothari, S. P., & Robin, A. (2000). The effect of institutional factors on properties of accounting earnings. Journal of Accounting and Economics, 29, 1–51. CrossRef
Barth, M., Landsman, W., & Lang, M. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46, 467–498. CrossRef
Blaylock, B., Shevlin, T., & Wilson, R. (2012). Tax avoidance, large positive temporary book-tax differences and earnings persistence. The Accounting Review, 87, 91–120. CrossRef
Burgstahler, D., & Chuk, L. (2012). What have we learned about earnings management? Correcting disinformation about discontinuities. Working Paper. University of Washington.
Burgstahler, D., & Dichev, I. (1997). Earnings management to avoid earnings decreases and losses. Journal of Accounting and Economics, 24, 99–129. CrossRef
Burgstahler, D., Hail, L., & Leuz, C. (2006). The importance of reporting incentives: Earnings management in European Private and Public Firms. The Accounting Review, 81(5), 983–1016. CrossRef
Burks, K., Randolph, D., & Seida, J. (2013). Modeling and interpreting interactions in tradeoff research. Working Paper. University of Notre Dame.
Bushman, R., Piotroski, J., & Smith, A. (2004). What determines corporate transparency? Journal of Accounting Research, 42(2), 207–252. CrossRef
Chan, K., Lin, K., & Mo, P. (2010). Will a departure from tax-based accounting encourage tax noncompliance? Archival evidence from a transition economy. Journal of Accounting and Economics, 50, 58–73. CrossRef
Dechow, P. (1994). Accounting earnings and cash flows as measures of performance: The role of accounting accruals. Journal of Accounting and Economics, 18, 3–42. CrossRef
Dechow, P., Skinner, D., & Sweeney, A. (1995). Detecting earnings management. The Accounting Review, 70, 193–225.
Degeorge, F., Patel, J., & Zeckhauser, R. (1999). Earnings manipulation to exceed thresholds. Journal of Business, 72, 1–33. CrossRef
Desai, M. (2003). The divergence between book income and tax income. In M. J. Poterba (Ed.), Tax policy and the economy (Vol. 17, pp. 169–206). Cambridge: MIT Press.
Desai, M. (2005). The degradation of corporate profits. Journal of Economic Perspectives, 19, 171–192. CrossRef
Desai, M. (2006). Reform alternatives for the corporate tax. Testimony before the U.S. House of Representatives Committee on Ways and Means, Subcommittee on Select Revenue Measures, Corporate Tax Reform public hearing, Washington, DC (May 9).
Dhaliwal, D., Frankel, R., & Trezevant, R. (1994). The taxable and book income motivations for a LIFO layer liquidation. Journal of Accounting Research, 32, 278–289.
Durtschi, C., & Easton, P. (2005). Earnings management? The shapes of the frequency distributions of earnings metrics are not evidence ipso facto. Journal of Accounting Research, 43, 557–592. CrossRef
Durtschi, C., & Easton, P. (2009). Earnings management? Erroneous inferences based on earnings frequency distributions. Journal of Accounting Research, 47, 1249–1281. CrossRef
Erickson, M., Hanlon, M., & Maydew, E. (2004). How much will firms pay for earnings that do not exist? Evidence of taxes paid on fraudulent earnings. The Accounting Review, 79, 387–408.
Francis, J., LaFond, R., Olsson, P., & Schipper, K. (2004). Costs of equity and earnings attributes. The Accounting Review, 79, 967–1010. CrossRef
Frank, K. (2000). Impact of a confounding variable on a regression coefficient. Sociological Methods & Research, 29, 147–194. CrossRef
Frank, M. M., Lynch, L., & Rego, S. (2009). Tax reporting aggressiveness and its relation to aggressive financial reporting. The Accounting Review, 84, 467–496. CrossRef
Graetz, M. (2005). A fair and balanced tax system for the twenty-first century. In Alan. Auerbach & Kevin. Hassett (Eds.), Toward Fundamental Tax Reform: 48-69. Washington, DC: The AEI Press.
Guenther, D., Maydew, E., & Nutter S. (1997). Financial reporting, tax costs, and book-tax conformity. Journal of Accounting and Economics, 23, 225–248.
Guenther, D., & Young, D. (2000). The association between financial accounting measures and real economic activity: A multinational study. Journal of Accounting and Economics, 29, 53–72. CrossRef
Hanlon, M. (2005). The persistence and pricing of earnings, accruals, and cash flows when firms have large book-tax differences. The Accounting Review, 80, 137–166. CrossRef
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of Accounting and Economics, 50, 127–178. CrossRef
Hanlon, M., Laplante, S., & Shevlin, T. (2005). Evidence on the possible information loss of conforming book income and taxable income. Journal of Law and Economics, 48, 407–442. CrossRef
Hanlon, M., Maydew, E., & Shevlin, T. (2008). An unintended consequence of book-tax conformity: A loss of earnings informativeness. Journal of Accounting and Economics, 46, 294–311. CrossRef
Hanlon, M., & Shevlin, T. (2002). Accounting for tax benefits of employee stock options and implications for research. Accounting Horizons, 16, 1–16. CrossRef
Hanlon, M., & Shevlin, T. (2005). Book-tax conformity for corporate income: An introduction to the issues. In J. M. Poterba (Eds.), Tax policy and the economy (Vol. 19). Cambridge, MA: National Bureau of Economic Research (Invited paper).
Harris, T., Lang, M., & Moller, H. (1994). The value relevance of German accounting measures: An empirical analysis. Journal of Accounting Research, 32, 187–209. CrossRef
Healy, P., & Wahlen, J. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13, 365–383.
Hung, M. (2001). Accounting standards and value relevance of financial statements: An international analysis. Journal of Accounting and Economics, 30, 401–420. CrossRef
Hunt, A., Moyer, S., & Shevlin, T. (1996). Managing interacting accounting measures to meet multiple objectives: A study of LIFO firms. Journal of Accounting and Economics, 21, 339–374.
Jenkins, N., & Pincus, M. (1998). LIFO versus FIFO: Updating what we have learned. Working paper, University of Iowa, Iowa City.
Jones, J. (1991). Earnings management during import relief investigations. Journgal of Accounting Research, 29, 193–228.
Kothari, S., Leone, A., & Wasley, C. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39, 163–197.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1998). Law and finance. Journal of Political Economy, 106, 1113–1155. CrossRef
Lang, M., Lins, K., & Maffett, M. (2012). Transparency, liquidity, and valuation: International evidence on when transparency matters most. Journal of Accounting Research, 50, 729–774.
Larcker, D., & Rusticus, T. (2010). On the use of instrumental variables in accounting research. Journal of Accounting and Economics, 49, 186–205. CrossRef
Lennox, C., Lisowski, P., & Pittman, J. (2013). Tax aggressiveness and accounting fraud. Journal of Accounting Research, 51, 739–778.
Leuz, C., Nanda, D., & Wysocki, P. (2003). Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69, 505–527. CrossRef
Leuz, C., & Wustemann, J. (2004). The role of accounting in the German financial system. In J. P. Krahnen & R. H. Schmidt (Eds.), The German financial system (pp. 450–483). Oxford: Oxford University Press. CrossRef
McClelland, J., & Mills, L. (2007). Weighing benefits and risks of taxing book income. Tax Notes, 114, 779–787.
Myers, J., Myers, L., & Skinner, D. (1999). Earnings momentum and earnings management. Journal of Accounting, Auditing, and Finance, 22, 249–284.
Price Waterhouse. (1995). Corporate taxes: A worldwide summary. New York: Price Waterhouse World Firm Services BV, Inc.
Shackelford, D. (2006). Testimony before the U.S. house of representatives committee on Ways and Means. Subcommittee on Select Revenue Measures, Corporate Tax Reform, May 9.
Shackelford, D., & Shevlin, T. (2001). Empirical tax research in accounting. Journal of Accounting and Economics, 31, 321–387. CrossRef
Skaife, H., & LaFond, R. (2012). Reporting incentives and the quality of non-U.S. firms’ working capital accruals. Working paper. University of California, Davis.
Treasury. (2012). The president’s framework for business tax reform. U.S. Department of the Treasury. February 2012, 1–25.
Watrin C., Ebert, N., & Thomsen, M. (2012). One-book versus two-book system: Learnings from Europe. Working paper. University of Muenster.
Watts, R., & Zimmerman, J. (1986). Positive accounting theory. Englewood Cliffs, NJ: Prentice-Hall.
Whitaker, C. (2005). Bridging the book-tax accounting gap. The Yale Law Journal, 115, 680–726.
- The association between book-tax conformity and earnings management
- Springer US
Neuer Inhalt/© Stellmach, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta, Frankfurt School