at Google ScholarTitle data
Loy, Thomas:
Can Enforcement Be Too Strict? The Case of Tax Office Strictness.
2014
Event: 10th Workshop on European Financial Reporting (EUFIN)
, 25.-26.09.2014
, Regensburg, Deutschland.
(Conference item: Conference
,
Paper
)
Abstract in another language
This paper analyzes the effect of tax office strictness on two aspects of earnings management, namely loss avoidance and income smoothing. The results contribute to literature for multiple reasons. First, I extend findings by Garrod et al. (2007) to another jurisdiction which is also characterized by strong book-tax alignment. Private German firms also seem to have great incentives to avoid small losses in the face of political cost. Second, I provide a possible explanation on why "there is (...) substantial within-country variation in managers' incentives to smooth earnings" (LaFond et al. (2007), p. 14). There is some indication that something as homogeneous as tax law seems to be enacted differently within a country's legal framework. Finally, I am able to extend findings from research on honesty in managerial reporting into financial accounting research. I show that there seems to be a significant U-shaped relationship of tax office strictness with income smoothing.
Further data
| Item Type: | Conference item (Paper) |
|---|---|
| Refereed: | Yes |
| Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Former Professors > Junior Professor Auditing and Financial Reporting - Juniorprof. Dr. Thomas Loy Profile Fields > Emerging Fields > Governance and Responsibility Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Business Administration Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Junior Professor Auditing and Financial Reporting Profile Fields Profile Fields > Emerging Fields Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Former Professors |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 15 Jun 2015 08:31 |
| Last Modified: | 15 Jun 2015 08:31 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/14961 |