Happy Summer—stock up and save 30% on Palgrave books, eBooks & journals! Shop now >>

cover

New Perspectives of Profit Smoothing

Empirical Evidence from China

Authors: Magni, Domitilla

  • Details profit and profit theory, and establishes three main reasons for profit smoothing
  • Explains real earnings management policies such as income smoothing, big bath earnings management, and income minimization and  maximization policies
  • Introduces China as a case study, exploring the last 20 years of capitalism and changes in the international context
see more benefits

Buy this book

eBook $64.99
price for USA (gross)
  • The eBook version of this title will be available soon
  • Due: September 24, 2019
  • ISBN 978-3-030-21286-5
  • Digitally watermarked, DRM-free
  • Included format:
  • ebooks can be used on all reading devices
Hardcover $119.99
price for USA
  • Customers within the U.S. and Canada please contact Customer Service at +1-800-777-4643, Latin America please contact us at +1-212-460-1500 (24 hours a day, 7 days a week).
  • Due: August 27, 2019
  • ISBN 978-3-030-21285-8
  • Free shipping for individuals worldwide
About this book

In a first approximation, profit may seem like a simple and intuitive concept, but the definition is not limited to a single conceptual category. Analysis of the definition and role of profit must be implemented with a study at the corporate level. This book discusses the phenomenon of profit smoothing, implemented by management, which aims to maintain a constant flow of profit over time. On an operational level, the phenomenon of profit smoothing analyses and determines the correlation existing between a shock to a variable at the corporate level and the relationship between this shock and profit.

This book discusses the main reasons, at the strategic level, of the phenomenon of profit smoothing and summarizes this into three groups. Firstly, the functionality of this phenomenon for corporate management is to transmit to the external environment, and especially to external investors, a business reality devoid of crisis and imbalances. Secondly, this initial motivation engages basically the second. In fact, levelling the trend of profit from year to year, top management can reduce the risk perceived from the outsiders and as from the company’s insiders. Thirdly, this justification is related to the stability of the flow of dividends. Profit smoothing places great emphasis on the phenomenon of dividends. It should be note how in fact the profit smoothing is used to keep the expectations of shareholders profit from one period to another.

This book is focused on the profit smoothing and, in particular, how this phenomenon is established in developing-economies like the Chinese one, and will be of interest to academics, researchers, and students of corporate finance.


About the authors

Domitilla Magni is currently a Research Fellow at the Roma Tre University, Italy, after completing her PhD in 2017 from La Sapienza University of Rome, Italy in Management Banking and Commodity Sciences. She has participated as a lecturer at many conferences on financial issues and strategic management alongside authoring many international publications. Her research interests include business strategies, corporate finance, and managerial issues.

Buy this book

eBook $64.99
price for USA (gross)
  • The eBook version of this title will be available soon
  • Due: September 24, 2019
  • ISBN 978-3-030-21286-5
  • Digitally watermarked, DRM-free
  • Included format:
  • ebooks can be used on all reading devices
Hardcover $119.99
price for USA
  • Customers within the U.S. and Canada please contact Customer Service at +1-800-777-4643, Latin America please contact us at +1-212-460-1500 (24 hours a day, 7 days a week).
  • Due: August 27, 2019
  • ISBN 978-3-030-21285-8
  • Free shipping for individuals worldwide

Services for this book

Loading...

Bibliographic Information

Bibliographic Information
Book Title
New Perspectives of Profit Smoothing
Book Subtitle
Empirical Evidence from China
Authors
Copyright
2019
Publisher
Palgrave Macmillan
Copyright Holder
The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
eBook ISBN
978-3-030-21286-5
DOI
10.1007/978-3-030-21286-5
Hardcover ISBN
978-3-030-21285-8
Edition Number
1
Number of Pages
XVI, 250
Number of Illustrations
1 b/w illustrations
Topics