Discussion of “The Effects of Taxes, Agency Costs and Information Asymmetry on Earnings Management: A Comparison of Public and Private Firms”

Discussion of “The Effects of Taxes, Agency Costs and Information Asymmetry on Earnings... 328 DOUGLAS A. SHACKELFORD For example, a bank with poor prospects may sell appreciated securities to enhance its earnings and mask its problems. This paper purports to determine whether the additional earnings management undertaken by public banks is to inform or to mislead the market, an interesting research question. The results are consistent with public bank managers using security transactions to communicate information. Two, the paper makes a compelling case that the security trading of banks during the period examined in this study provides a useful setting for investigating the effects of public ownership. Securities gains and losses have been evaluated successfully in many years. Closely held banks produce extensive publicly available data. The years examined, 1991 and 1992, were relatively undisturbed by accounting, tax and regulatory changes. In addition, the Beatty, Chamberlain and Magliolo (1995) regression model provides an appropriate estimation structure. Ideally, banks would be randomly assigned to ownership structure, but nature does not create such research design niceties. Furthermore, as the authors note, it seems unlikely that earnings management acumen is a major factor in the decision to access public capital markets. The authors contend that banks dominate insurers for this analysis, emphasizing difficul- ties Collins, http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Accounting Studies Springer Journals

Discussion of “The Effects of Taxes, Agency Costs and Information Asymmetry on Earnings Management: A Comparison of Public and Private Firms”

Loading next page...
Kluwer Academic Publishers
Copyright © 1999 by Kluwer Academic Publishers
Business and Management; Accounting/Auditing; Corporate Finance; Public Finance
Publisher site
See Article on Publisher Site

You’re reading a free preview. Subscribe to read the entire article.

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches


Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.



billed annually
Start Free Trial

14-day Free Trial