The effect of tax accounting rules on capital structure and discretionary accruals

• 成果类型: Article
• 署名作者: Calegari, MJ
• 署名单位: University System of Georgia; Georgia State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(00)00027-6
• 发表日期: 2000
• 关键词: earnings management; FIRMS RESPONSES; REFORM ACT; debt; corporate

摘要

This study investigates the effect of changing tax accounting provisions for long-term manufacturing contracts between 1984-1985 and 1989-1990 on debt and accrual policies using a simultaneous equations approach. The results indicate that firms adjust debt ratios and discretionary accruals with relatively high book-tax conformity to achieve tax planning goals and use discretionary accruals with relatively low book-tax conformity to accomplish financial reporting objectives. Manufacturing firms directly affected by the change in tax rules for long-term contracts increase their leverage by 6.2 percentage points more than other manufacturers. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: G32; H25; M41.