In this study, we investigate cost behavior of companies in Organisation for Economic Co-operation and Development (OECD) member countries before corporate tax rate cuts become effective. We consider such events to generate strong incentives for intertemporal cost shifting. We analyze the time...

Prior literature considers a change in the national corporate income tax (CIT) rate as a strong firm incentive to manage earnings. This article examines the link between two recent CIT reforms in Sweden and earnings management with a large dataset of private firms. The effects of tax rate cuts...

The aim of this article is to investigate if small firms react to a national corporate tax rate reduction by managing their taxable income. In contrast to previous studies, we also analyze whether outsourcing of accounting tasks affects the magnitude of the reaction. Based on a sample of Finnish...