Home > Research > Publications & Outputs > Extraordinary items and income smoothing
View graph of relations

Extraordinary items and income smoothing: a positive accounting approach

Research output: Contribution to journalJournal article

Published

Standard

Extraordinary items and income smoothing : a positive accounting approach. / Beattie, Vivien; Brown, Stephen; Ewers, David; John, Brian; Manson, Stuart; Thomas, Dylan; Turner, Michael.

In: Journal of Business Finance and Accounting, Vol. 21, No. 6, 09.1994, p. 791-811.

Research output: Contribution to journalJournal article

Harvard

Beattie, V, Brown, S, Ewers, D, John, B, Manson, S, Thomas, D & Turner, M 1994, 'Extraordinary items and income smoothing: a positive accounting approach', Journal of Business Finance and Accounting, vol. 21, no. 6, pp. 791-811. https://doi.org/10.1111/j.1468-5957.1994.tb00349.x

APA

Beattie, V., Brown, S., Ewers, D., John, B., Manson, S., Thomas, D., & Turner, M. (1994). Extraordinary items and income smoothing: a positive accounting approach. Journal of Business Finance and Accounting, 21(6), 791-811. https://doi.org/10.1111/j.1468-5957.1994.tb00349.x

Vancouver

Beattie V, Brown S, Ewers D, John B, Manson S, Thomas D et al. Extraordinary items and income smoothing: a positive accounting approach. Journal of Business Finance and Accounting. 1994 Sep;21(6):791-811. https://doi.org/10.1111/j.1468-5957.1994.tb00349.x

Author

Beattie, Vivien ; Brown, Stephen ; Ewers, David ; John, Brian ; Manson, Stuart ; Thomas, Dylan ; Turner, Michael. / Extraordinary items and income smoothing : a positive accounting approach. In: Journal of Business Finance and Accounting. 1994 ; Vol. 21, No. 6. pp. 791-811.

Bibtex

@article{b679e28bc8744238a5f19919bfa50bc2,
title = "Extraordinary items and income smoothing: a positive accounting approach",
abstract = "This is an empirical study of single-period income smoothing which uses an incentives-based model to explain classificatory choices. An index is constructed to measure the smoothing effect of these choices. Weighted least squares regression results indicate that classificatory choices consistent with smoothing are more likely to be observed in firms with high earnings variability, high dividend payout, substantial managerial holdings of share options and diffuse share ownership. The existence of material scope for smoothing strengthens these findings. The model as a whole is statistically significant and, although the proportion of variability in smoothing explained is modest, it compares very favourably with other accounting choice studies. The relationship between smoothing and alternative earnings management strategies, including big bath accounting, is explored.",
author = "Vivien Beattie and Stephen Brown and David Ewers and Brian John and Stuart Manson and Dylan Thomas and Michael Turner",
year = "1994",
month = "9",
doi = "10.1111/j.1468-5957.1994.tb00349.x",
language = "English",
volume = "21",
pages = "791--811",
journal = "Journal of Business Finance and Accounting",
issn = "0306-686X",
publisher = "Wiley-Blackwell",
number = "6",

}

RIS

TY - JOUR

T1 - Extraordinary items and income smoothing

T2 - a positive accounting approach

AU - Beattie, Vivien

AU - Brown, Stephen

AU - Ewers, David

AU - John, Brian

AU - Manson, Stuart

AU - Thomas, Dylan

AU - Turner, Michael

PY - 1994/9

Y1 - 1994/9

N2 - This is an empirical study of single-period income smoothing which uses an incentives-based model to explain classificatory choices. An index is constructed to measure the smoothing effect of these choices. Weighted least squares regression results indicate that classificatory choices consistent with smoothing are more likely to be observed in firms with high earnings variability, high dividend payout, substantial managerial holdings of share options and diffuse share ownership. The existence of material scope for smoothing strengthens these findings. The model as a whole is statistically significant and, although the proportion of variability in smoothing explained is modest, it compares very favourably with other accounting choice studies. The relationship between smoothing and alternative earnings management strategies, including big bath accounting, is explored.

AB - This is an empirical study of single-period income smoothing which uses an incentives-based model to explain classificatory choices. An index is constructed to measure the smoothing effect of these choices. Weighted least squares regression results indicate that classificatory choices consistent with smoothing are more likely to be observed in firms with high earnings variability, high dividend payout, substantial managerial holdings of share options and diffuse share ownership. The existence of material scope for smoothing strengthens these findings. The model as a whole is statistically significant and, although the proportion of variability in smoothing explained is modest, it compares very favourably with other accounting choice studies. The relationship between smoothing and alternative earnings management strategies, including big bath accounting, is explored.

U2 - 10.1111/j.1468-5957.1994.tb00349.x

DO - 10.1111/j.1468-5957.1994.tb00349.x

M3 - Journal article

VL - 21

SP - 791

EP - 811

JO - Journal of Business Finance and Accounting

JF - Journal of Business Finance and Accounting

SN - 0306-686X

IS - 6

ER -