...Erik L. Beardsley; Mehmet C. Kara; Connie D. Weaver ABSTRACT This study examines the association between stock price incentives (portfolio delta) and earnings management using tax expense, as well as whether this association varies with opportunities to manage earnings. Prior research suggests...

...David A. Guenther; Linda K. Krull; Brian M. Williams ABSTRACT We provide a theoretical framework to identify when measures of tax avoidance reflect tax avoidance related to, and unrelated to, earnings management. The influence of earnings management on measures of tax avoidance occurs because...

... I errors. In this study, I demonstrate that the Krull measure of pre-managed earnings is susceptible to Type I errors. I then introduce an alternative measure based on Gupta, Laux, and Lynch (2016) , and I find no evidence of earnings management through PRE using the Gupta measure of pre-managed...

... aggressive reporting tax avoidance earnings management corporate risk-taking Frank, Lynch, and Rego (2009) provide evidence of a robust, positive association between aggressive financial reporting and aggressive tax reporting, a phenomenon we refer to as “aggressive reporting.” Before...

...Cristi A. Gleason; Morton Pincus; Sonja Olhoft Rego ABSTRACT We investigate the consequences of tax-related internal control material weaknesses (ICMWs) for financial reporting. We hypothesize that the presence of ineffective controls over the tax function makes earnings management through...

... also suggest that both types of BTDs are associated with earnings management and tax avoidance. I find evidence that tax avoidance firms have a more positive association between their BTDs and both pretax earnings changes and tax expense changes. However, I find only inconsistent evidence...

...Brant E. Christensen; Adam J. Olson; Thomas C. Omer ABSTRACT Tax-related accounts are complex and often the last accounts finalized in the financial reporting process. Accordingly, these accounts can be used as a “last-chance” earnings management tool ( Dhaliwal, Gleason, and Mills 2004 ). We...

...Christoph Watrin; Nadine Ebert; Martin Thomsen ABSTRACT: There is an ongoing debate in the U.S. about the effect of book-tax conformity on earnings management in consolidated statements. Although both one- and two-book systems are present in Europe, European data have not been used to contribute...

... reporting incentives tax incentives earnings management In 2004, Congress implemented a temporary tax holiday for repatriation dividends, under which U.S. multinational corporations (hereafter, U.S. MNCs) would be entitled to an 85 percent dividends-received deduction on repatriation dividends...

... higher than year-end ETRs. We then investigate whether firms' overstatement of quarterly ETRs creates slack that is used for earnings management. We find that quarterly ETR increases are more likely to be reversed in subsequent quarters when firms would have missed their analysts' earnings forecast...