Firms' Responses to Anticipated Reductions in Tax Rates: The Tax Reform Act of 1986

International Financial Reporting Standards and the quality of financial statement information

“…In certain cases, managers may structure their accounting policy choice so as to transfer earnings from "good" accounting years to "bad" years (DeFond & Park, 1997;Han & Wang, 1998;Guidry et al, 1999). Alternatively, firms may defer revenue recognition into future accounting periods to reduce the current period's tax charge (Scholes, Wilson & Wolfson, 1992). Similarly, firms are usually more eager to disclose good information, while they tend to delay the announcement of bad information (Aboody & Kaznik, 2000).…”

Determinants of the variability in corporate effective tax rates and tax reform: Evidence from Australia

“…However, the year 2000 was excluded because this is a transitional tax year in terms of the Ralph Review proposals, and prior research (e.g. Dhaliwal and Wang, 1992;Scholes et al, 1992;Guenther, 1994) shows that firms normally respond to tax legislation changes one year after tax legislation becomes operative. The final sample consists of 92 firms (552 firm years) after excluding firms that fall into the following categories:…”

An unintended consequence of book-tax conformity: A loss of earnings informativeness

“…Finally, because there is some evidence of firms shifting income into post-TRA 86 tax years in order to take advantage of lower statutory tax rates (Guenther, 1994;Scholes et al, 1992), we estimate the difference-in-differences regression by excluding data for the tax year 1988 to ensure the results are not somehow driven by this income shifting. Again, we find results consistent with the results in Table 3.…”