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.

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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
Departments: Lancaster University Management School > Accounting & Finance
ID Code: 48566
Deposited By: ep_importer_pure
Deposited On: 11 Jul 2011 21:00
Refereed?: No
Published?: Published
Last Modified: 14 Dec 2019 00:49

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