Earnings management and deferred tax / Rohaya Md Noor, Nor’Azam Mastuki and Zanariah Aziz

• Main Author: Aziz, Zanariah
• Format: Article
• Language: English
• Published: Accounting Research Institute (ARI) & Faculty of Accountancy 2007
• Online Access: http://ir.uitm.edu.my/id/eprint/281/1/AJ_ROHAYA%20MD%20NOOR%20MAR%2007.pdf; http://ir.uitm.edu.my/id/eprint/281/; https://mar.uitm.edu.my/

This study investigates whether firms use deferred tax expense to meet earnings targets: (1) to avoid an earnings decline and (2) to avoid a loss. The current study replicates Phillips et al. (2003)’s study, where they found evidence that firms use deferred tax expense to manage earnings. The study...