The effect of tax accounting rules on capital structure and discretionary accruals

Autor:	Michael J. Calegari
Rok vydání:	2000
Předmět:	Economics and Econometrics Leverage (finance) Capital structure Accrual business.industry media_common.quotation_subject Accounting Conformity Earnings management Simultaneous equations Debt Debt ratio Business Finance media_common
Zdroj:	Journal of Accounting and Economics. 30:1-31
ISSN:	0165-4101
DOI:	10.1016/s0165-4101(00)00027-6
Popis:	This study investigates the effect of changing tax accounting provisions for long-term manufacturing contracts between 1984–1985 and 1989–1990 on debt and accrual policies using a simultaneous equations approach. The results indicate that firms adjust debt ratios and discretionary accruals with relatively high book-tax conformity to achieve tax planning goals and use discretionary accruals with relatively low book-tax conformity to accomplish financial reporting objectives. Manufacturing firms directly affected by the change in tax rules for long-term contracts increase their leverage by 6.2 percentage points more than other manufacturers.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::399e9f803f7fee7ff2807bc76142237f https://doi.org/10.1016/s0165-4101(00)00027-6 Zobrazit plný text záznamu Full Text from ScienceDirect