, this evidence is consistent with income smoothing improving the effectiveness of earnings-based information in monitoring …We investigate whether income smoothing affects the usefulness of earnings for contracting through the monitoring role … of earnings-based debt covenants. First, we examine initial contract design and predict that income smoothing will …

This paper uses a new approach to examine whether income smoothing garbles earnings information or improves the … informativeness of past and current earnings about future earnings and cash flows. We measure income smoothing by the negative … correlation of a firm s change in discretionary accruals with its change in pre-managed earnings. Using the approach of Collins …

). Collectively, this evidence is consistent with income smoothing improving the effectiveness of earnings-based information in …We investigate whether income smoothing affects the usefulness of earnings for contracting through the monitoring role … of earnings-based debt covenants. First, we examine initial contract design and predict that income smoothing will …

Business income is important in the upper tail of the personal income distribution, but the extent to which it is … captured by measures of personal income varies substantially across tax regimes. Using linked individual and firm data from … Norway, we are able to attribute business income to personal owners as it accrues rather than when it is realized. This …

Using income smoothing and its two components – the informational component and the garbled component – we examine … to smooth earnings more. We also find that the informational component, rather than the garbled component, of income … smoothing is stronger for firms in weak-FTR countries, indicating that income smoothing in weak-FTR countries enhances the …