Journal of the American Taxation Association · 2012 · 79 citations · 67 references
BusinessAccountingTax LawCorporate FinanceCorporate TaxationTaxationCorporate Income TaxEarnings ManagementEarnings ReportingIncome Tax AccountingTax AuditingTax ReportingAccrual Earnings ManagementCorporate Income Tax PolicyCross-border Earnings ManagementCurrent AccrualsData AvailabilityMarginal Tax Rate EffectsMarginal Tax Rate IncidenceMarginal Tax Rate Reform
ABSTRACT China issued the New Enterprise Income Tax Law in 2007, which changed the corporate income tax rate from 33 percent to 25 percent and came into effect in 2008. Using the simulated marginal tax rate as an indicator of firms' earnings management incentives, and discretionary current accruals as a proxy for earnings management, we find significant tax-induced earnings management in 2007. However, the downward earnings management becomes less obvious for firms that have a greater percentage of shares owned by state-owned enterprises, have an audit committee on the board, and disclose certified internal control reports. Data Availability: All data are available from the second author (contact author) upon request.
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Earnings Management During Import Relief Investigations
Jennifer Jones · Journal of Accounting Research · 1991 · 8.6K citations
Business, Accountancy, Accounting +13
Detecting Earnings Management.
Patricia Dechow, Richard G. Sloan · The Accounting Review · 1995 · 5.9K citations · Full text
Business, Accountancy, Accounting +17