Coppens & This study Large private Earnings The results show that private Peek (2005) examines the firms in distributions firms manage earnings to avoid shapes of and Belgium, losses in both high alignment discontinuities in Denmark, countries and in low alignment the earnings France, countries. However they fail to distributions of Germany, reject the second hypothesis, private firms by Italy, the namely that private firms comparing this Netherlands, manage earnings to avoid with the public Spain and the earnings decreases. firms as a U.K. between benchmark. 1993 and 1999 Schrand & Whether banks Regression The final The results show that valuation Wong do earnings sample allowances against deferred tax (2003) management by consists of assets are an earnings setting a high 235 banks management tool used by valuation allowance that adopted banks. The sample is restricted associated with SFAS 109 in to banks and it does not capture deferred tax 1993. the behavior of other assets and if companies. banks adjust the valuation allowance in the subsequent periods.
Coppens & Peek (2005) This study examines the shapes of and discontinuities in the earnings distributions of private firms by comparing this with the public firms as a benchmark. Large private firms in Belgium, Denmark, France, Germany, Italy, the Netherlands, Spain and the U.K. between 1993 and 1999 Earnings distributions The results show that private firms manage earnings to avoid losses in both high alignment countries and in low alignment countries. However they fail to reject the second hypothesis, namely that private firms manage earnings to avoid earnings decreases. Schrand & Wong (2003) Whether banks do earnings management by setting a high valuation allowance associated with deferred tax assets and if banks adjust the valuation allowance in the subsequent periods. The final sample consists of 235 banks that adopted SFAS 109 in 1993. Regression The results show that valuation allowances against deferred tax assets are an earnings management tool used by banks. The sample is restricted to banks and it does not capture the behavior of other companies.