Determinants of voluntary accounting policy choices by Australian life insurers

Klumpes, P J M (1997) Determinants of voluntary accounting policy choices by Australian life insurers. Working Paper. The Department of Accounting and Finance, Lancaster University.

[img]
Preview
PDF (Document.pdf)
Document.pdf

Download (127kB)

Abstract

This paper empirically examines various incentives facing managers of Australian life insurers to voluntarily use actuarial-based income smoothing techniques (AIS). AIS were subsequently incorporated into jointly-developed Australian and New Zealand life insurance accounting standards (LIAS) issued in 1997. The propensity of managers to voluntarily use AIS is predicted to be related to the firm s tax rate, ownership structure, size, expense ratio and solvency. These predictions were tested on a sample of 28 firms during the period 1992-93. Empirical results suggest that firms using AIS tend to be larger, pay higher levels of income tax and are less likely to contravene minimum solvency requirements.

Item Type:
Monograph (Working Paper)
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/aacsb/disciplinebasedresearch
Subjects:
ID Code:
48566
Deposited By:
Deposited On:
11 Jul 2011 21:00
Refereed?:
No
Published?:
Published
Last Modified:
26 Sep 2020 23:47