What question did this study set out to answer?

This article aims to explore how firm's management practices impact the smoothing of reported earnings.

Income Smoothing: The Role of Management.

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Analysis explores how management influences earnings smoothing, suggesting implications for investors.

This article aims to explore how firm's management practices impact the smoothing of reported earnings.
Discussion of accounting principles and techniques for earnings smoothing.
Analysis of investor focus on dividends and capital gains.
Theoretical framework regarding capital asset values.
Examination of firm behaviors in response to earnings fluctuations.
Firms utilize specific managerial discretion to normalize reported earnings.
Results suggest devices are used to counter short-term earnings deviations.
Evidence indicates that past earnings trends are used for future budgeting and forecasting.

Carl R. Beidleman (1973) studied this question.

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