Synapse
⌘+K
Synapse
PulseExploreClubsResearchersJournals
Instagram
HomeClubsExplore
June 15, 2026Journal of the American Taxation Association

Identifying Tax-Induced Earnings Management Around TRA 86 as a Function of Prior Tax-Aggressive Behavior.

View Full Paper
Ask AI
Bookmark
Share

Authors

TLThomas J. LopezPRPhilip R. RegierTLTanya Lee

Discussion

Loading...

Member takes

Overview

Investigates tax-driven accrual shifts in firms based on previous tax-aggressive behavior, suggesting implications for financial reporting.

Key Points

  • This research aims to explore how tax-induced earnings management is influenced by prior tax-aggressive behavior and tax rate changes.
  • Development of a variable indicating a firm's propensity for tax-minimizing behavior.
  • Analysis of shifts in discretionary current accruals around the Tax Reform Act of 1986.
  • Examination of the relationship between tax-aggressiveness and negative discretionary current accrual shifts.
  • Firms with prior tax-aggressive behavior are more likely to report negative discretionary current accrual shifts before the tax rate change.
  • Tax-aggressive firms exhibit greater negative shifts in discretionary current accruals compared to non-aggressive firms.
  • The degree of negative accrual shift correlates with the specific tax rate change that firms encounter.

Cite This Study

Lopez et al. (1998) studied this question.

synapsesocial.com/papers/6a2f96eca1cfeec490828111https://doi.org/10.2308/jata-6147755
View Full Paper
Ask AI
Bookmark
Share