search query: @indexterm Equations / total: 85
reference: 17 / 85
Author: | Calegari, M. J. |
Title: | The effect of tax accounting rules on capital structure and discretionary accruals |
Journal: | Journal of Accounting & Economics
2000 : AUG, VOL. 30:1, p. 1-32 |
Index terms: | DEBT EARNINGS EQUATIONS TAX POLICY |
Language: | eng |
Abstract: | 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. |
SCIMA