Is Tax Policy Responsible for Inclination in Practicing Earnings Management: A Case Study Analysis among Accountants in Non-listed Companies of Bangladesh

Md Mahofuzur Rahman, Asif Mahbub Karim


The study is attempted to show the relationship between progressive tax policy in Bangladesh and the intensity of the practice of earnings management. Discussion in this study includes two parts where we introduced the taxation system of Bangladesh along with the tax administration in the first part, and then a brief discussion has been made on earnings management with its techniques. We attempted to find a relation between tax policy and inclination for practicing earnings management in Bangladesh. This study is based on both qualitative and quantitative data. Different articles on earnings management have been studied, and primary statistics have been collected by placing questionnaires among business graduates, who are serving in accounts section of commercial firms. At the end, it has been concluded that the contemporary tax policy of Bangladesh, its multiplying tax burden, and its loopholes are the probable stimulus behind the practice of earnings management.

Aus. J. Acc. Eco. Fin. Vol 2(2), October 2016, P 91-99


Earnings Management; Progressive Tax; Tax Evasion

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