Earnings and Balance-Sheet Properties and the Interplay of Tax Incentives and Tax Enforcement

Title data

Loy, Thomas:
Earnings and Balance-Sheet Properties and the Interplay of Tax Incentives and Tax Enforcement.
Bayreuth , 2016 . - 34 p.

Official URL:

Abstract in another language

This paper analyzes the joint association of tax incentives and tax law enforcement strictness on earnings and balance sheet properties of private firms. It answers a call for additional research on why "there is (...) substantial within-country variation in managers' incentives to [manage] earnings" (LaFond et al. (2007), p. 14). There is some evidence that something as homogeneous as tax law seems to be enacted differently within a country's legal framework. The key results are that stricter enforcement seemingly impairs managers' ability or willingness to engage in income-decreasing accrual earnings management. On the downside, managers instead seem to resort to real earnings management choices which are associated with potentially negative long-term real business impact.

Further data

Item Type:	Working paper, discussion paper
Keywords:	Financial Reporting; Tax Incentives; Tax Enforcement
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 Research Institutions > Research Units > Forschungsstelle für Unternehmens- und Kapitalmarktrecht sowie Unternehmenssteuerrecht - Companies, Capital Markets and Taxes - CoCapT 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 Research Institutions Research Institutions > Research Units 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:	26 Aug 2016 11:56
Last Modified:	04 Apr 2019 05:40
URI:	https://eref.uni-bayreuth.de/id/eprint/34597