<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In this paper, I present a review of tax accounting research with a specific focus on earnings management in response to changes in the corporate tax rate. While prior surveys of the tax accounting literature have a broad scope and focus primarily on publicly listed firms, I concentrate on studies examining private firms. These firms have stronger incentives to engage in tax-induced earnings management and recent evidence shows that firms in general defer earnings from high to low tax periods around tax reforms. I summarize contemporary studies, questions examined, and learnings. In addition, I discuss practical implications and outline future research possibilities.</p></abstract>

In this paper, I present a review of tax accounting research with a specific focus on earnings management in response to changes in the corporate tax rate. While prior surveys of the tax accounting literature have a broad scope and focus primarily on publicly listed firms, I concentrate on studies examining private firms. These firms have stronger incentives to engage in tax-induced earnings management and recent evidence shows that firms in general defer earnings from high to low tax periods around tax reforms. I summarize contemporary studies, questions examined, and learnings. In addition, I discuss practical implications and outline future research possibilities.

A review of earnings management in private firms in response to tax rate changes

Nordic Tax Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"A review of earnings management in private firms in response to tax rate changes"}

In this paper, I present a review of tax accounting research with a specific focus on earnings management in response to changes in the corporate tax rate....

A review of earnings management in private firms in response to tax rate changes

Article Category: Article

Published Online: Dec 29, 2017

Page range: 151 - 161

Received: Jun 14, 2017

Accepted: Oct 26, 2017

DOI: https://doi.org/10.1515/ntaxj-2017-0011

Keywords
Accounting, Corporate taxation, Earnings management, Private firms, Tax reform

© 2017 D. Sundvik

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

A review of earnings management in private firms in response to tax rate changes

Article Category: Article

Published Online: Dec 29, 2017

Page range: 151 - 161

Received: Jun 14, 2017

Accepted: Oct 26, 2017

DOI: https://doi.org/10.1515/ntaxj-2017-0011

KeywordsAccounting, Corporate taxation, Earnings management, Private firms, Tax reform

© 2017 D. Sundvik

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Accounting, Corporate taxation, Earnings management, Private firms, Tax reform