This study investigates whether polluting firms manage earnings in the year a material environmental remediation expense (ERE) is recognized (the event year) and whether the market reacts to the ERE recognition (measured through the effect on the earnings response coefficients of polluters). Using a sample of 118 firms designated as potentially responsible parties by the EPA, I estimate the discretionary accruals around the event year using the performance-matched modified Jones model. Overall, results suggest that polluters take income- decreasing accruals in year -1,...

This textbook is intended for an undergraduate course in tax accounting, an introductory MBA tax course, or tax practitioners and foreign investors with limited awareness of the Egyptian tax code. This textbook focuses on tax of legal persons, including business corporations and partnerships, deriving income on Egyptian soil or through Egyptian sources. Taxation is an essential tool of fiscal policy. It is even more so in developing countries with growing economies. Egypt has been undergoing economic reforms for two decades, and tax policy has been at the heart of the changes. Spurred by a...