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Author: Eduardo Flores
Publisher:
ISBN:
Category :
Languages : en
Pages : 22
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Book Description
Earnings management is a special issue in accounting theory, and the main impact of the practice is the creation of biases in financial statements. More specifically, earnings management affect accounting profits, and consecutively affect stakeholders in their decisions. According to the specialized literature, earnings management is a practice considered feasible by companies when they glimpse incentives to perform it, and incentives to the practice can be established by different reasons, so one may reasonably believe that enforcements rules of the environment is a special stimulus to the practice. As an example, unequal tax-rules between economic sectors can stimulate the practice of earnings management. So, our purpose is to verify if the legal enforcement by the government authorities created incentives to the earnings management in Brazil. To test the hypothesis, we selected a sample-data composed by Brazilian insurance companies, since this sector suffered a considerable increase in the income-taxes rate in 2008, moving the global rate from 34% to 40% of the accounting profit. Our sample consisted in 2.431 firms-years observations, in 28 quarters between 2006 and 2012. The utilization of this specific group had other important motive: according to Brazilian tax regulatory system, technical provisions from insurance companies can be considered deductible from income taxes. To consider the situation, we created a panel data model with changes in the level of the specified accruals during the selected time and included control variables for a better model specification. The results showed a significant relationship between the increased tax rates and the measure of the technical provisions, showing evidences of earnings management behavior in this industry specifically in the period which the tax-rate was increased for this group of companies.
Author: Eduardo Flores
Publisher:
ISBN:
Category :
Languages : en
Pages : 22
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Book Description
Earnings management is a special issue in accounting theory, and the main impact of the practice is the creation of biases in financial statements. More specifically, earnings management affect accounting profits, and consecutively affect stakeholders in their decisions. According to the specialized literature, earnings management is a practice considered feasible by companies when they glimpse incentives to perform it, and incentives to the practice can be established by different reasons, so one may reasonably believe that enforcements rules of the environment is a special stimulus to the practice. As an example, unequal tax-rules between economic sectors can stimulate the practice of earnings management. So, our purpose is to verify if the legal enforcement by the government authorities created incentives to the earnings management in Brazil. To test the hypothesis, we selected a sample-data composed by Brazilian insurance companies, since this sector suffered a considerable increase in the income-taxes rate in 2008, moving the global rate from 34% to 40% of the accounting profit. Our sample consisted in 2.431 firms-years observations, in 28 quarters between 2006 and 2012. The utilization of this specific group had other important motive: according to Brazilian tax regulatory system, technical provisions from insurance companies can be considered deductible from income taxes. To consider the situation, we created a panel data model with changes in the level of the specified accruals during the selected time and included control variables for a better model specification. The results showed a significant relationship between the increased tax rates and the measure of the technical provisions, showing evidences of earnings management behavior in this industry specifically in the period which the tax-rate was increased for this group of companies.
Author: Lourenço, Isabel
Publisher: IGI Global
ISBN: 1466684542
Category : Business & Economics
Languages : en
Pages : 371
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Book Description
Accounting has often been described as the language of business. As the increasing competition of overseas markets begins to affect even the smallest local companies, many more business professionals must become fluent in accounting principles and practice. Standardization of Financial Reporting and Accounting in Latin American Countries highlights the recent move to International Financial Reporting Standards (IFRS) and addresses some of the concerns raised due to cultural differences and the level of enforcement of these standards in separate countries. Describing the evolution of both financial and managerial accounting due to the adoption of IFRS, this book is an essential reference source for both students and seasoned professionals in the fields of accounting, finance, and related management fields, especially those with an international emphasis.
Author: Malek El Diri
Publisher: Springer
ISBN: 3319626868
Category : Business & Economics
Languages : en
Pages : 120
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Book Description
This book provides researchers and scholars with a comprehensive and up-to-date analysis of earnings management theory and literature. While it raises new questions for future research, the book can be also helpful to other parties who rely on financial reporting in making decisions like regulators, policy makers, shareholders, investors, and gatekeepers e.g., auditors and analysts. The book summarizes the existing literature and provides insight into new areas of research such as the differences between earnings management, fraud, earnings quality, impression management, and expectation management; the trade-off between earnings management activities; the special measures of earnings management; and the classification of earnings management motives based on a comprehensive theoretical framework.
Author: Amy Yunzhi Zang
Publisher: ProQuest
ISBN: 9780549163251
Category :
Languages : en
Pages : 120
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Book Description
Author: Joshua Ronen
Publisher: Springer Science & Business Media
ISBN: 0387257713
Category : Business & Economics
Languages : en
Pages : 587
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Book Description
This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?
Author: Ms.Era Dabla-Norris
Publisher: International Monetary Fund
ISBN: 1513547437
Category : Business & Economics
Languages : en
Pages : 39
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Book Description
This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.
Author: World Bank
Publisher: World Bank Publications
ISBN: 1464814414
Category : Business & Economics
Languages : en
Pages : 241
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Book Description
Seventeen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2020 measures aspects of regulation affecting 10 areas of everyday business activity.
Author: Uptal Bhattacharya
Publisher:
ISBN: 9789616430258
Category :
Languages : en
Pages : 27
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Book Description
Author: Mr.Sanjeev Gupta
Publisher: International Monetary Fund
ISBN: 1451849842
Category : Business & Economics
Languages : en
Pages : 42
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Book Description
This paper demonstrates that high and rising corruption increases income inequality and poverty by reducing economic growth, the progressivity of the tax system, the level and effectiveness of social spending, and the formation of human capital, and by perpetuating an unequal distribution of asset ownership and unequal access to education. These findings hold for countries with different growth experiences, at different stages of development, and using various indices of corruption. An important implication of these results is that policies that reduce corruption will also lower income inequality and poverty.
Author:
Publisher: Elsevier
ISBN: 0444633898
Category : Business & Economics
Languages : en
Pages : 749
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Book Description
Handbook of Behavioral Economics: Foundations and Applications presents the concepts and tools of behavioral economics. Its authors are all economists who share a belief that the objective of behavioral economics is to enrich, rather than to destroy or replace, standard economics. They provide authoritative perspectives on the value to economic inquiry of insights gained from psychology. Specific chapters in this first volume cover reference-dependent preferences, asset markets, household finance, corporate finance, public economics, industrial organization, and structural behavioural economics. This Handbook provides authoritative summaries by experts in respective subfields regarding where behavioral economics has been; what it has so far accomplished; and its promise for the future. This taking-stock is just what Behavioral Economics needs at this stage of its so-far successful career. Helps academic and non-academic economists understand recent, rapid changes in theoretical and empirical advances within behavioral economics Designed for economists already convinced of the benefits of behavioral economics and mainstream economists who feel threatened by new developments in behavioral economics Written for those who wish to become quickly acquainted with behavioral economics
