Does Income Smoothing Improve Earnings Informativeness

By Jennifer Wu Tucker, Paul Zarowin. 2006

887 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/fb334217523ee9b18fe966d77ca1142d0edec9bf

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Martin Walker
2. Shivaram Rajgopal
3. Christian Leuz
4. Christopher S. Armstrong
5. Catherine Schrand
6. W. Guay
7. John R. Graham
8. Nemit Shroff

In Finance

1. Martin Walker
2. Shivaram Rajgopal
3. K. Hussainey
4. Catherine Schrand
5. Christopher S. Armstrong
6. John R. Graham
7. W. Guay
8. David B. Farber

In Strategy and Management

1. Shivaram Rajgopal
2. Martin Walker
3. Christian Leuz
4. Christopher S. Armstrong
5. K. Hussainey
6. John R. Graham
7. David B. Farber
8. Weili Ge

Citations in the corpus

• Information Effect of Entry into Credit Ratings Market: The Case of Insurers' Ratings (2012, background): “See for example, Hunt, Moyer and Shelvin (2000) and Tucker and Zarowin (2006).”
• Relationship-Specificity, Contract Enforceability, and Income Smoothing (2013, positive): “Our study contributes to a growing literature on firms’ income smoothing behavior (Tucker and Zarowin 2006).”
• Bank Loan Loss Provisions Research: A Review (2017, background): “We commend Wall and Koch (2000)’s early review that present a broad overview on bank loan loss provisions for over a decade now.”
• Accounting Discretion, Loan Loss Provisioning and Discipline of Banks' Risk-Taking (2012, neutral): “While some argue that income smoothing reveals information (e.g., Arya et al., 2003; Chaney and Lewis, 1995; Tucker and Zarowin, 2006; Trueman and Titman, 1988; Sankar and Subramanyam, 2001; Demski, 1998), others argue that income smoothing distorts information (e.”
• Managerial Ability and Income Smoothing (2019, positive): “Tucker and Zarowin (2006) report that smoothing improves stock price informativeness about future performance.”
• Earnings quality: Evidence from the field (2013, background): “…stability of operations or the elimination of transitory noise by the accrual process or benevolent managers (e.g., Dechow 1994, Subramanyam 1996, Tucker and Zarowin 2006, and Dichev and Tang 2008).16 Other studies point to the opposite interpretation, emphasizing the opportunistic and…”
• A cross-country study on the effects of national culture on earnings management (2010, methodology): “APPENDIX: Definition of Variables Dependent Variable DACC Discretionary accruals estimated in the cross- ectional accruals model as in Tucker and Zarowin (2006).”
• Incentives to Cheat: The Influence of Executive Compensation and Firm Performance on Financial Misrepresentation (2007, neutral): “However, while many firms smooth their reported income (Degeorge et al. 1999, Jenkins et al. 2006), scholars debate whether income smoothing is problematic, or benign and inconsequential (Dechow and Skinner 2000), or even advantageous ( Tucker and Zarowin 2006 ).”