Previous literature on earnings management has examined the maintained hypothesis that firms barely beating earnings benchmarks are earnings manipulators with earnings before accounting manipulation otherwise slightly below their benchmarks and has implemented research designs that treat all...

The paper analyses the possibility of using the economic concept of income introduced by J. R. Hicks for accounting purposes. Despite some disadvantages hindering from its broader practical utilization, this concept still finds its place in the area of managerial accounting and capital...

This paper examines the sensitivity of horizontal equity measures (coefficient of variation (CV) and coefficient of residual variation (CRV)) to a common assumption in horizontal equity studies – that changes in level of omitted income do not change horizontal equity experienced by taxpayers...

The paper investigates the determinants of rent-seeking behavior under differing regulatory regimes over the long run, with a focus on the link between inequality and financial fraud and financial scandal. Using archival and quantitative evidence, from the United Kingdom between 1908 and 2010,...

We examine whether foreign investors influence a local firm's income smoothing, using a sample of Korean firms from 2000 to 2013. We hypothesize that given innate informational difficulties of overseas investments, foreign investors demand less noisy and more sustainable earnings, and to satisfy...

In the model there are two types of financial auditors with identical technology, one of which is endowed with a prior reputation for honesty. We characterize conditions under which there exists a “two-tier equilibrium” in which “reputable” auditors refuse bribes offered by clients for...

In recent years stock option plans (SOPs) have become an important component of managerial remuneration in most industrialized countries. Commonly accepted, corporate as well as individual taxes have a major impact on the costs of a SOP. In contrast, the tax influence on the benefits of a SOP...

This paper investigates a regulated company's capacity choices for a two-stage investment opportunity with growth options, if the company faces a cost-based regulation. It uses a theoretical approach: A discrete-time mathematical model which is solved analytically. For new technologies like...

Interfirm relationships can be successful but are also fraught with problems. We study how to encourage one party, herein the seller, to make a cooperative relation-specific investment that will increase the joint surplus. The seller, fearing he will be held up by the buyer, typically refrains...