search query: @indexterm STATISTICAL METHODS / total: 745
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| Author: | Brayshaw, R. E. Eldin, A. E. K. |
| Title: | The smoothing hypothesis and the role of differences |
| Journal: | Journal of Business Finance and Accounting
1989 : WINTER, VOL. 16:5, p.621-633 |
| Index terms: | CORPORATE FINANCE INCOMES RISK STATISTICAL METHODS ACCOUNTING |
| Language: | eng |
| Abstract: | Income smoothing occurs where variability of reported income is reduced with the intention of changing risk perceptions. Smoothing is possible where there is managerial discretion of a significant accounting item. Over the years 1975-1980 companies were able to exercise discretion over the disclosure of exchange gains and losses. Statistical test results indicate that income volatility was affected by the accounting treatment used and that management sought to avoid volatility in reported earnings. |
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