The effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss
This study seeks to determine whether or not deferred tax expense and discretionary accruals affect the tendency to engage in earnings management in two settings: to avoid an earnings decline, or earnings loss. This thesis observed Philippine publicly listed companies for the years 2011-2015. For ea...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2016
|
| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/5671 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | De La Salle University |
| Language: | English |
| id |
oai:animorepository.dlsu.edu.ph:etd_bachelors-6111 |
|---|---|
| record_format |
eprints |
| spelling |
oai:animorepository.dlsu.edu.ph:etd_bachelors-61112021-05-06T00:27:05Z The effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss Bolo, Kim Joshua O. Chua, Charlene Nicole V. This study seeks to determine whether or not deferred tax expense and discretionary accruals affect the tendency to engage in earnings management in two settings: to avoid an earnings decline, or earnings loss. This thesis observed Philippine publicly listed companies for the years 2011-2015. For each setting, we identified firm-years that engaged in earnings management through Burgstahler and Dichev's (1997) earnings distribution approach and utilized a panel logistic regression model to test our hyphotheses.The findings conclude that a deferred tax expense has a significant effect only in earnings management to avoid an earnings decline in the industrial sector due to the sector's low capital intensity. Discretionary accruals also proved to be insignificant in upwards earnings management as firms predominantly used negative discretionary accruals. Additionally, the presence of information asymmetry in the Philippine stock market may have also contributed to this.Among the control variables included in the study, only the difference in industry sector proved to be significant in the tendency to engage in earnings management in both settings. 2016-01-01T08:00:00Z text https://animorepository.dlsu.edu.ph/etd_bachelors/5671 Bachelor's Theses English Animo Repository Earnings management--Philippines Deferred tax--Philippines Liabilities (Accounting)--Philippines Accounting |
| institution |
De La Salle University |
| building |
De La Salle University Library |
| continent |
Asia |
| country |
Philippines Philippines |
| content_provider |
De La Salle University Library |
| collection |
DLSU Institutional Repository |
| language |
English |
| topic |
Earnings management--Philippines Deferred tax--Philippines Liabilities (Accounting)--Philippines Accounting |
| spellingShingle |
Earnings management--Philippines Deferred tax--Philippines Liabilities (Accounting)--Philippines Accounting Bolo, Kim Joshua O. Chua, Charlene Nicole V. The effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss |
| description |
This study seeks to determine whether or not deferred tax expense and discretionary accruals affect the tendency to engage in earnings management in two settings: to avoid an earnings decline, or earnings loss. This thesis observed Philippine publicly listed companies for the years 2011-2015. For each setting, we identified firm-years that engaged in earnings management through Burgstahler and Dichev's (1997) earnings distribution approach and utilized a panel logistic regression model to test our hyphotheses.The findings conclude that a deferred tax expense has a significant effect only in earnings management to avoid an earnings decline in the industrial sector due to the sector's low capital intensity. Discretionary accruals also proved to be insignificant in upwards earnings management as firms predominantly used negative discretionary accruals. Additionally, the presence of information asymmetry in the Philippine stock market may have also contributed to this.Among the control variables included in the study, only the difference in industry sector proved to be significant in the tendency to engage in earnings management in both settings. |
| format |
text |
| author |
Bolo, Kim Joshua O. Chua, Charlene Nicole V. |
| author_facet |
Bolo, Kim Joshua O. Chua, Charlene Nicole V. |
| author_sort |
Bolo, Kim Joshua O. |
| title |
The effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss |
| title_short |
The effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss |
| title_full |
The effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss |
| title_fullStr |
The effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss |
| title_full_unstemmed |
The effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss |
| title_sort |
effect of deferred tax expense and discretionary accruals on a firm's tendency to engage in earnings management for the purpose of avoiding an earnings decline and earnings loss |
| publisher |
Animo Repository |
| publishDate |
2016 |
| url |
https://animorepository.dlsu.edu.ph/etd_bachelors/5671 |
| _version_ |
1712576416328974336 |