Earnings manipulation : cost of capital versus tax
MetadataShow full item record
- Discussion papers (FOR) 
We show that if taxable income were linked to accounting income, there will exist an automatic safeguard against manipulation of earnings within the analyzed framework. Separating taxable income from accounting income will remove this self-controlled mechanism, and accordingly create a need for separate countermeasures to prevent earnings manipulation.
PublisherNorwegian School of Economics and Business Administration. Department of Finance and Management Science