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Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales

Research output: Working paper

Published

Standard

Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales. / Beekes, W A.

Lancaster University : The Department of Accounting and Finance, 2003. (Accounting and Finance Working Paper Series).

Research output: Working paper

Harvard

Beekes, WA 2003 'Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales' Accounting and Finance Working Paper Series, The Department of Accounting and Finance, Lancaster University.

APA

Beekes, W. A. (2003). Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales. (Accounting and Finance Working Paper Series). The Department of Accounting and Finance.

Vancouver

Beekes WA. Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales. Lancaster University: The Department of Accounting and Finance. 2003. (Accounting and Finance Working Paper Series).

Author

Beekes, W A. / Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales. Lancaster University : The Department of Accounting and Finance, 2003. (Accounting and Finance Working Paper Series).

Bibtex

@techreport{0f8ea3b2fda5434e9ca03025b6b77db1,
title = "Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales",
abstract = "This study examines whether the ten Water and Sewerage group Companies (WaSCs) in England and Wales used accounting accruals to decrease earnings and in turn reduce political costs in response to the Windfall Tax. In particular, this study encompasses a sample period when there was widespread speculation about a potential Windfall Tax and the monopolistic level of utility company profits. Therefore considerable incentives existed for managers to use the accounting discretion available to them to reduce potential political costs. The results show that WaSCs did not use income-decreasing earnings management in response to the Windfall Tax in the year prior to the 1992 or the 1997 General Election. In contrast the evidence obtained in this study suggests that income-increasing accruals were adopted. The results suggest other pressures were more important to these large group plcs than the threat of politically imposed wealth transfers.",
keywords = "Accounting Accruals, Earnings Management, Water and Sewerage Companies, Windfall Tax.",
author = "Beekes, {W A}",
year = "2003",
language = "English",
series = "Accounting and Finance Working Paper Series",
publisher = "The Department of Accounting and Finance",
type = "WorkingPaper",
institution = "The Department of Accounting and Finance",

}

RIS

TY - UNPB

T1 - Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales

AU - Beekes, W A

PY - 2003

Y1 - 2003

N2 - This study examines whether the ten Water and Sewerage group Companies (WaSCs) in England and Wales used accounting accruals to decrease earnings and in turn reduce political costs in response to the Windfall Tax. In particular, this study encompasses a sample period when there was widespread speculation about a potential Windfall Tax and the monopolistic level of utility company profits. Therefore considerable incentives existed for managers to use the accounting discretion available to them to reduce potential political costs. The results show that WaSCs did not use income-decreasing earnings management in response to the Windfall Tax in the year prior to the 1992 or the 1997 General Election. In contrast the evidence obtained in this study suggests that income-increasing accruals were adopted. The results suggest other pressures were more important to these large group plcs than the threat of politically imposed wealth transfers.

AB - This study examines whether the ten Water and Sewerage group Companies (WaSCs) in England and Wales used accounting accruals to decrease earnings and in turn reduce political costs in response to the Windfall Tax. In particular, this study encompasses a sample period when there was widespread speculation about a potential Windfall Tax and the monopolistic level of utility company profits. Therefore considerable incentives existed for managers to use the accounting discretion available to them to reduce potential political costs. The results show that WaSCs did not use income-decreasing earnings management in response to the Windfall Tax in the year prior to the 1992 or the 1997 General Election. In contrast the evidence obtained in this study suggests that income-increasing accruals were adopted. The results suggest other pressures were more important to these large group plcs than the threat of politically imposed wealth transfers.

KW - Accounting Accruals

KW - Earnings Management

KW - Water and Sewerage Companies

KW - Windfall Tax.

M3 - Working paper

T3 - Accounting and Finance Working Paper Series

BT - Earnings management in response to a windfall-tax in the water and sewerage utility companies in England and Wales

PB - The Department of Accounting and Finance

CY - Lancaster University

ER -