Self-Disclosure and Selection Bias in Studies of Amt- Motivated Behavior
Posted: 5 Dec 1998
Date Written: November 1995
This study provides evidence on the characteristics associated with the completeness of corporate tax reporting by firms subject to the AMT. We find disclosure of tax status is contingent upon the potential costs and benefits of the disclosure. In particular, the variables that are significant in explaining the disclosure decision are consistent with the argument that firms use disclosure to pursue their own political and competitive goals. Further, we demonstrate that relying solely on self-disclosed AMT status in a study of earnings management can lead to results substantially different from those obtained using the actual AMT status of the firm. Obtaining the paper: This paper is available in WordPerfect 5.1 and Rich Text Format (RTF) for anonymous FTP transfer at: omer.cba.neu.edu After login (username anonymous and your internet address as password) change to the subdirectory wpaper. The file names are man_ple.rtf and "man_ple.w51".
JEL Classification: M4, H2, G3
Suggested Citation: Suggested Citation