An explanation for accounting income smoothing
Article Abstract:
Research examines the possible reasons for income smoothing by managers and its possible outcomes. Results indicate that managers try to attain a smooth income because it reduces shareholder's perceptions of volatility in the underlying earnings process and their subsequent fear of bankruptcy. Income smoothing also improves a company's terms of trade with suppliers and customers, and it reduces borrowing costs. A discussion by Paul Newman is included.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1988
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Selecting experimental and comparison samples for use in studies of auditor reporting decisions
Article Abstract:
The economic characteristics of anti-trust litigation are used to address the potential problems which may arise from selecting comparison and experimental samples for use in audit reports. The use of economics and institutional knowledge in designing and gathering samples of qualified and unqualified firms is demonstrated. A sample of 49 companies is examined in which nine different lawsuits or investigations were used.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1987
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Determinants of auditor change in the public sector
Article Abstract:
Auditor changes in the public sector are significantly related to audit fees, reports of material internal control shortcomings, and reports of breaking auditing laws and regulations. Organizations changing auditors are more likely to have current-year audit fees that are lower than the previous year, than are organizations that did not change auditors.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1990
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