2017
DOI: 10.1016/j.intaccaudtax.2016.12.003
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Book-tax conformity and earnings management in response to tax rate cuts

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Cited by 41 publications
(30 citation statements)
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“…In Equation 2, DA it represents the discretionary accruals of company i in year t. Discretionary accruals (DA) is used as the dependent variable to measure accounting quality. The controls include the debt ratio (LEV), asset growth ratio (GRW), change in capital (ISSUE) [52,53], return on assets (ROA), natural logarithm of total assets (SIZE), cash flow from operations (CFO) [54][55][56][57][58][59][60][61][62], and whether the auditor is a big four accounting firm (Big) [63][64][65][66][67][68][69].…”
Section: Earnings Management: Discretionary Accrualsmentioning
confidence: 99%
“…In Equation 2, DA it represents the discretionary accruals of company i in year t. Discretionary accruals (DA) is used as the dependent variable to measure accounting quality. The controls include the debt ratio (LEV), asset growth ratio (GRW), change in capital (ISSUE) [52,53], return on assets (ROA), natural logarithm of total assets (SIZE), cash flow from operations (CFO) [54][55][56][57][58][59][60][61][62], and whether the auditor is a big four accounting firm (Big) [63][64][65][66][67][68][69].…”
Section: Earnings Management: Discretionary Accrualsmentioning
confidence: 99%
“…In addition, their financial statements are not widely distributed to the public and are more likely to be influenced by tax objectives (e.g. Ball & Shivakumar, 2005;Sundvik, 2017). Given these unique attributes of unlisted entities, studying earnings management and adoption of IFRS is relevant.…”
Section: Earnings Management Incentivesmentioning
confidence: 99%
“…In a recent study, Sundvik (2017a) further informs this debate by studying whether private firms in high book-tax conformity jurisdictions manage earnings more around CTR reductions than in low book-tax conformity jurisdictions. Sundvik (2017a) hypothesizes that there will be more income-decreasing earnings management before an upcoming CTR reduction if book-tax conformity is higher, since stronger book-tax conformity in this context should be associated with higher actual tax savings. The study uses financial statement data from the Orbis database of Bureau van Dijk for over 30,000 private firms distributed throughout 12 jurisdictions of the European region, including Russia.…”
Section: The Impact Of Book-tax Conformitymentioning
confidence: 99%