Earnings Management Strategies and the Trade‐Off between Tax Benefits and Detection Risk: To Conform or Not to Conform?

By Brad A. Badertscher, John D. Phillips, Morton Pincus, Sonja O. Rego. 2009

179 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/c1cd999c3f65361862e4988a95ed931401dd90cd

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Citations in the corpus

The Incentives for Tax Planning (2012, background): “…of earnings reported to the capital markets, tax aggressiveness, or some combination of these two activities.9 The discretion available in GAAP provides managers with an opportunity to manage book earnings upward without necessarily affecting taxable income (e.g., Badertscher et al., 2009).”
A review of tax research (2010, unknown): “See also Badertscher et al. (2009) for an extension of Erickson et al. to restatement firms.”
CEO After-Tax Compensation Incentives and Corporate Tax Avoidance (2014, background): “have problems comprehending tax implications as well (Badertscher et al. 2009).”
Admitting Mistakes: Home Country Effect on the Reliability of Restatement Reporting (2015, unknown): “Firm characteristics include size, leverage, profitability, and growth (DeFond and Jiambalvo 1991; Badertscher et al. 2009).”
Board Interlocks and Earnings Management Contagion (2013, methodology): “The GAO sample is widely used by recent studies on earnings management (e.g., Badertscher et al. 2009).”
Audit Fees and Book-Tax Differences (2012, unknown): “Badertscher et al. (2009) report that book-tax differences are useful in predicting restatements.”
The Effect of Tax Authority Monitoring and Enforcement on Financial Reporting Quality (2014, unknown): “(2008) and Badertscher et al. (2013), we measure earnings informativeness using the contemporaneous relation between stock returns and changes in earnings.”
Performance Measurement of Corporate Tax Departments (2010, background): “Finally, firms engaging in earnings management to meet or beat earnings targets might use tax accounts to manage their book earnings (Phillips et al. 2003; Dhaliwal et al. 2004; Badertscher et al. 2009).”
Where do firms manage earnings? (2012, unknown): “(2004), Badertscher et al. (2009) examine restatement firms and characteristics of restatement firms that manage earnings using methods where book income conforms to taxable income or using methods that are unconfirmed.”