Phillips, The deferred tax A sample Probit They conclude that the deferred Pincus, expense in period which regression. tax expense is more useful in Rego examining a starts in 1994 detecting earnings management (2003) potential relation and ends in than accrual models are. with earnings 2000. management besides this objective the researchers also compare the usefulness of deferred tax expense over three specific accrual models in detecting. earnings management. Phillips, to find out Probit The sample is The authors find that changes Pincus, whether certain regression. gathered from in specific components of the Rego, Wan deferred tax asset the deferred tax liability are (2004) and deferred tax Compustat significantly useful in detecting liability components are database and earnings management, whereas associated with the sample the total deferred tax liability is earnings period not. These specific components management. consists of are the revenue and expense the years accruals and reserves. With 1994 till these findings hypothesis 2 is 2000. The confirmed. The other final sample hypotheses remain consists of unconfirmed due to 396 firm-year insignificant relations. observations.
Phillips, Pincus, Rego (2003) The deferred tax expense in examining a potential relation with earnings management besides this objective the researchers also compare the usefulness of deferred tax expense over three specific accrual models in detecting. earnings management. A sample period which starts in 1994 and ends in 2000. Probit regression. They conclude that the deferred tax expense is more useful in detecting earnings management than accrual models are. Phillips, Pincus, Rego, Wan (2004) to find out whether certain deferred tax asset and deferred tax liability components are associated with earnings management. The sample is gathered from the Compustat database and the sample period consists of the years 1994 till 2000. The final sample consists of 396 firm-year observations. Probit regression. The authors find that changes in specific components of the deferred tax liability are significantly useful in detecting earnings management, whereas the total deferred tax liability is not. These specific components are the revenue and expense accruals and reserves. With these findings hypothesis 2 is confirmed. The other hypotheses remain unconfirmed due to insignificant relations.