An unintended consequence of book-tax conformity: A loss of earnings informativeness

By Michelle Hanlon, Edward L. Maydew, Terry Shevlin. 2008

212 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/7ce6d4f6899959044e4d030679d2bbad0b09ae09

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In Accounting

1. Clive Lennox
2. Jere R. Francis
3. Weili Ge
4. Mark L. Defond
5. Patricia M. Dechow
6. Catherine Schrand
7. Christian Leuz
8. Jeong‐Bon Kim

In Economics and Econometrics

1. Catherine Schrand
2. Patricia M. Dechow
3. Zitian Wang
4. Thorsten Sellhorn
5. Mark L. Defond
6. Weili Ge
7. Clive Lennox
8. Jere R. Francis

Citations in the corpus

• Recognition versus Disclosure of Fair Values (2015, methodology): “Following Easton and Harris (1991), Francis et al. (2005) and Hanlon et al. (2008), we examine earnings informativeness using the following regression: Retit = η0 + η1Eit + η2Discl_Prit + η3Eit x Discl_Prit + η4IMR_Extit + η5Sizeit + η6Leverageit + η7Lossit + η8MBit + κit (6) where Retit is firm…”
• Externalities of Public Firm Presence: Evidence from Private Firms’ Investment Decisions (2013, unknown): “We measure ERCs as the association between annual stock returns and changes in annual earnings (Hanlon et al. 2008).”
• Tax Aggressiveness and Corporate Transparency (2019, unknown): “29 Because there is no consensus on which countries are considered havens, we alternatively define havens using the seven havens identified in Hines and Rice (1994). The seven havens in Hines and Rice are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.”
• Aggregate Quasi Rents and Auditor Independence: Evidence from Audit Firm Mergers in China (2011, unknown): “4 The “difference-in-differences” approach has been applied in other settings in which the researchers examine regulatory changes over time and control for the time effect (see Hanlon, Maydew, and Shevlin 2008; Altamuro and Beatty 2008; among others).”
• The Effect of Tax Authority Monitoring and Enforcement on Financial Reporting Quality (2014, unknown): “…enforcement change in Russia was well publicized making it very likely that this information was known to both managers and investors.26 Following Hanlon et al. (2008) and Badertscher et al. (2013), we measure earnings informativeness using the contemporaneous relation between stock returns and…”
• Will a departure from tax-based accounting encourage tax noncompliance? Archival evidence from a transition economy (2010, unknown): “Indeed, one of the alternatives considered by the President’s Advisory Panel on Federal Tax Reform is taxing book income (Hanlon et al., 2008; McClelland and Mills, 2007).”
• Selection models in accounting research (2012, background): “The advantages of such a difference-in-differences research design are well recognized by accounting researchers (e.g., Altamuro et al. 2005; Desai et al. 2006; Hail and Leuz 2009; Hanlon et al. 2008).”
• The association between book-tax conformity and earnings management (2014, unknown): “…is that we test the effect of book-tax conformity on manager behavior (earnings management) rather than on the potential effects of management’s behavior on various earnings attributes such as earnings persistence (Atwood et al. 2010), earnings response coefficients (Hanlon et al. 2005, 2008), etc.”
• Earnings quality research: Advances, challenges and future research (2010, background): “…several cases in which the Treasury Department and the FASB have sought informal BLOCKIN BLOCKIN input BLOCKIN BLOCKIN directly from accounting academics regarding research studies that potentially inform proposed standards (e.g., Dechow, Hutton and Sloan, 1996; Hanlon, Maydew and Shevlin, 2008).”
• Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “These studies generally did not control for endogeneity of method choice. and leases (Dharan and Lev, 1993; Pincus, 1993).41 Hanlon et al. (2008) find that firms that switch to accrual-based accounting for tax reporting have a decrease in earnings informativeness of book earnings, suggesting that…”
• Do Corporate Governance Characteristics Influence Tax Management (2010, background): “(2010). Table 5 shows the regression results for the five-year average tax rates for both GAAP and cash ETR. We use a Hausman test to see if there are any significant differences between GAAP and cash taxes. Results show that as company size increases, tax rates do as well, consistent with other res”