Work

Earnings manipulation: cost of capital versus tax

Year: 1999

Type: article

Abstract: We show that if taxable income were linked to accounting income, there will exist an automatic safeguard against manipulation of earnings within the analysed framework. Separating taxable income from accounting income will remove this self-controlled mechanism, and accordingly create a need for separate countermeasures to prevent earnings manipulation.

Source: European Accounting Review

DOI: 10.1080/096381899335899

Authors: Aasmund Eilifsen, Kjell Henry Knivsfla, Frode Saettem

Institution: Norwegian School of Economics

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funder: Norges Forskningsråd

OpenAlex ID: W2120367269

FWCI: 13.36

Cites: 11

Cited by: 38

Related to: 10