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THE SMOOTHING OF INCOME NUMBERS: SOME EMPIRICAL EVIDENCE ON SYSTEMATIC DIFFERENCES BETWEEN CORE AND PERIPHERY INDUSTRIAL SECTORS
Author(s) -
Belkaoui Ahmed,
Picur Ronald D.
Publication year - 1984
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1984.tb00768.x
Subject(s) - smoothing , core (optical fiber) , secondary sector of the economy , economics , demographic economics , labour economics , econometrics , dual (grammatical number) , empirical evidence , business , monetary economics , economy , mathematics , statistics , computer science , telecommunications , philosophy , epistemology , art , literature
This study tests the effects of the dual economy on income smoothing behavior. It is hypothesized that a higher degree of smoothing of income numbers will be exhibited by firms in the periphery sector than by firms in the core sector as a reaction to different opportunity structures and experiences. The results indicate that a majority of firms may be resorting to income smoothing. A higher number is included among firms in the periphery sector.