New Perspectives of Profit Smoothing: Empirical Evidence from China, Magni Domitilla

CONTENTS

1. Chapter 1. Theory of Profit

1.1 Profit in traditional argumentation way

1.1.1 Classical economists thinking

1.1.2.1 Alfred Marshall. Short and long-term

1.1.2.2 Equilibrium characteristics

1.2 Economic governance of the firm

1.2.1 Distributive and productive logic

1.2.3 Definition model of the governance structure: Williamsons View

1.2.4 Re-discussing Williamsons Model

1.2.5 Markets Served

1.2.6 Interdependence Between Production and Commercialization Strategies

2. Chapter 2. Profit impact in Business Vision

2.1 The concept of profit in business vision

2.1.1 Profit and profitability

2.1.2 Profit as a business objective

2.1.3 Problems in maximizing profit as a business goal

2.1.4 Theoretical settings for the purpose of the enterprise

2.2 Profit as a negotiable income

2.2.1 Ricardian return, Paretian rent and monopolistic annuities

2.2.2 Entrepreneurial Rents Theory

2.2.3 Managerial Rents Model

2.2.4 Rent Appropriation Theory

2.3 From profit to value creation and sharing

2.3.1 Stakeholder views

2.3.2 Shareholder views

3.1 Smoothing

3.1.1 Capital Market

3.1.1.2 Banking System

3.1.2 Governance

3.2 Real earnings management policies

3.2.2 Income smoothing policies

3.2.3 Big Bath earnings management

3.2.4 Income minimization and income maximization policies

3.2.5 Underlying reasons for the implementation of financial statement policies

4. Chapter 4. Towards a definition of Profit Smoothing

4.1 Income Smoothing

4.1.1 Approaches to the study of income smoothing

4.1.1.1 Classical Approach

4.1.1.2 Income Variability Approach

4.1.1.3 Dual Economy Approach

4.1.2 When Insiders know more than Outsiders

4.1.3 Income Smooth Attributes

4.1.4 Classification of Firms into Smoothers Categories

4.1.5 Accounting techniques for smoothing

4.1.5.1 Motivation of income smoothing

4.1.5.3 Inventory Accounting

4.2 Profit Smoothing and Corporate Finance

4.2.1 Profits strategic reasons

4.2.2 Gordons model related to managerial goals

4.2.3 Culture of extra profit as a threat to the shareholder value

5. Chapter 5. Why China?

5.1 Introduction

5.2 Chinas development: a powerful imperialist pole emerges

5.2.1 Chinese development

5.2.2 Developments reasons

5.2.3 China in the world market

5.2.4 Economic and global issues

5.3 Chinese Financial System

5.3.1 Importance of the financial structure

5.3.2 Gradual reform of the Chinese financial system

5.3.4 Problems with the structure of the Chinese financial system

5.4 Corporate governance and development of Chinese Financial Economy

5.4.2 Conclusion on the Chinese system

6. Chapter 6. Empirical analysis of Profit Smoothing

6.1 Empirical study on accounting and financial data