Article1995

Managing Financial Reports of Commercial Banks: The Influence of Taxes, Regulatory Capital, and Earnings

Anne L. Beatty · Sandra L. Chamberlain · Joseph Magliolo

748 citations0/0 files storedJournal of Accounting Research

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Auditing, Earnings Management, Governance Banking stability, regulation, efficiency Accounting Theory and Financial Reporting

Abstract

This paper investigates how banks alter the timing and magnitude of transactions and accruals to achieve primary capital, tax, and earnings goals. Recent research, including Moyer [1990], Scholes, Wilson, and Wolfson [1990], and Collins, Shackelford, and Wahlen [1995], provides evidence that banks execute transactions and manage accruals to achieve some or all of these objectives. A common feature of these studies is the assumption that when managers make a particular accrual or transaction decision, all other decisions are fixed. We relax this assumption and allow such decisions to be determined simultaneously.

Citations in this library

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References

1978Specification Tests in Econometrics

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