Title: Taxable income management and information content of income

Authors: Hamed Hamedian; Azar Rahdarian; Mohsen Kavyani

Addresses: Khouzestan Tax Directorate, State Tax Organization of Islamic Republic of Iran, No.19, Resalat 3 Ave, Koyenaft, Ahwaz, 61666-55571, Iran ' Khouzestan Province Industry, Mine and Trade Organization of Islamic Republic of Iran, Iran ' Director of Khouzestan Tax Directorate, State Tax Organization of Islamic Republic of Iran, Management of Khouzestan Tax Applied Science University, Iran

Abstract: Today, income management is one of the attractive and controversial issues in accounting investigation areas from both investigations and regulatory view. Managers do manage income either to distort information or to defer and report the information related to future incomes. This investigation aims at examining the effect of taxable income management on the information content of taxable income of firms. Tests of research hypotheses were performed with an empirical method based on econometric and using multivariate regression analysis, t-test, Wilcoxon total scores, and specifically by using the panel data model across 147 firms listed on the Tehran Stock Exchange between 2002 and 2011. Findings show that taxable income management reduces the information content of taxable income. In addition, firms manage accounting income to defer information.

Keywords: taxable income; earnings management; information content; income management; Iran; firm income; accounting income.

DOI: 10.1504/IJIQ.2016.083108

International Journal of Information Quality, 2016 Vol.4 No.2, pp.83 - 97

Accepted: 09 Jul 2015
Published online: 21 Mar 2017 *

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