Financial reporting incentives, earnings management, and tax avoidance in SMEs

Sánchez Ballesta, Juan Pedro; Yagüe, José

Publication:
Financial reporting incentives, earnings management, and tax avoidance in SMEs

dc.contributor.author	Sánchez Ballesta, Juan Pedro
dc.contributor.author	Yagüe, José
dc.contributor.department	Organización de Empresas y Finanzas
dc.contributor.other	Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Organización de Empresas y Finanzas	es
dc.date.accessioned	2023-12-20T11:58:27Z
dc.date.available	2023-12-20T11:58:27Z
dc.date.issued	2020
dc.description	©2020. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ This document is the Accepted version of a Published Work that appeared in final form in Journal of Business Finance and Accounting (JBFA). To access the final edited and published work see https://doi.org/10.1111/jbfa.12519	es
dc.description.abstract	This paper examines earnings management and tax aggres siveness in SMEs. First, we find a discontinuity around zero in the distribution of earnings but not in the distribution of earnings change, and provide evidence that SMEs engage in accrual and real earnings management to beat zero earn ings, to achieve a stable net income over the years, and also when in situations of financial constraints. We also find an overall negative association between income-increasing earnings management and non-conforming tax avoidance. In addition, we show that SMEs are less tax aggressive in those settings where we have previously found that they engage in upward earnings management (i.e., small profits, smoothed net income, financial constraints). This suggests that under financial reporting incentives to report higher earnings, upward earnings management clearly prevail over tax aggressiveness. On the contrary, in settings without the pressure to report higher earnings, our findings suggest that SMEs may simultaneously engage in conforming and non conforming tax avoidance to reduce taxes paid	es
dc.format	application/pdf	es
dc.format.extent	30	es
dc.identifier.citation	Journal of Business Finance and Accounting (JBFA)
dc.identifier.doi	https://doi.org/10.1111/jbfa.12519
dc.identifier.doi	1468-5957
dc.identifier.issn	0306-686X
dc.identifier.uri	http://hdl.handle.net/10201/136780
dc.language	eng	es
dc.relation	Sin financiación externa a la Universidad	es
dc.rights	info:eu-repo/semantics/openAccess	es
dc.rights	Attribution-NonCommercial-NoDerivatives 4.0 Internacional	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/	*
dc.subject	Discretionary accruals	es
dc.subject	Earnings targets	es
dc.subject	Financial constraints	es
dc.subject	Financial reporting incentives	es
dc.subject	Real earnings management	es
dc.subject	SMEs	es
dc.subject	Tax avoidance	es
dc.title	Financial reporting incentives, earnings management, and tax avoidance in SMEs	es
dc.type	info:eu-repo/semantics/article	es
dspace.entity.type	Publication	es
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