The association between book-tax conformity and earnings management

IF 4.8 3区 管理学 Q1 BUSINESS, FINANCE
Bradley S. Blaylock, Fabio B. Gaertner, T. Shevlin
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引用次数: 80

Abstract

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.
账面税收一致性与盈余管理之间的关系
在文献中有一个关于符合账面和应税收入的成本和收益的持续争论。支持者认为,提高账面税收一致性将减少激进的财务报告:管理收益增加会增加税收,并将减少滥用避税,因为管理税收减少了向股东报告的收益。我们使用了一组来自34个国家的139,536家公司1996-2007年的年度观察数据,以检验高水平的账面税收一致性是否与较少的盈余管理有关。我们发现,较高的账面税收一致性与盈余管理显著增加(而非减少)相关。我们得出的结论是,增加账面税收一致性的主要好处之一,即更真实的财务报告和更少的盈余管理,不太可能像以前想象的那么大。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Review of Accounting Studies
Review of Accounting Studies BUSINESS, FINANCE-
CiteScore
7.90
自引率
7.10%
发文量
82
期刊介绍: Review of Accounting Studies provides an outlet for significant academic research in accounting including theoretical, empirical, and experimental work. The journal is committed to the principle that distinctive scholarship is rigorous. While the editors encourage all forms of research, it must contribute to the discipline of accounting. The Review of Accounting Studies is committed to prompt turnaround on the manuscripts it receives.  For the majority of manuscripts the journal will make an accept-reject decision on the first round.  Authors will be provided the opportunity to revise accepted manuscripts in response to reviewer and editor comments; however, discretion over such manuscripts resides principally with the authors.  An editorial revise and resubmit decision is reserved for new submissions which are not acceptable in their current version, but for which the editor sees a clear path of changes which would make the manuscript publishable. Officially cited as: Rev Account Stud
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