Income smoothing by Dutch hospitals

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Research indicates that hospitals manage their earnings. However, these findings might be influenced by methodological issues. In this study, I exploit specific features of Dutch hospitals to study income smoothing while limiting these methodological issues. The managers of Dutch hospitals have the opportunity not only to postpone revenues to future periods but also to choose the moment of recognition of the postponed revenue. These postponements and recognitions can be positive as well as negative and have to be disclosed in hospitals' financial statements. I show that the patterns found with respect to postponing revenue and the recognition of postponed revenue are consistent with the expectation that hospitals attempt to smooth their income.
Original languageEnglish
Pages (from-to)510-524
JournalJournal of Accounting and Public Policy
Volume33
Issue number5
DOIs
Publication statusPublished - 2014

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title = "Income smoothing by Dutch hospitals",
abstract = "Research indicates that hospitals manage their earnings. However, these findings might be influenced by methodological issues. In this study, I exploit specific features of Dutch hospitals to study income smoothing while limiting these methodological issues. The managers of Dutch hospitals have the opportunity not only to postpone revenues to future periods but also to choose the moment of recognition of the postponed revenue. These postponements and recognitions can be positive as well as negative and have to be disclosed in hospitals' financial statements. I show that the patterns found with respect to postponing revenue and the recognition of postponed revenue are consistent with the expectation that hospitals attempt to smooth their income.",
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Income smoothing by Dutch hospitals. / Boterenbrood, D.R.

In: Journal of Accounting and Public Policy, Vol. 33, No. 5, 2014, p. 510-524.

Research output: Contribution to JournalArticleAcademicpeer-review

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AU - Boterenbrood, D.R.

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N2 - Research indicates that hospitals manage their earnings. However, these findings might be influenced by methodological issues. In this study, I exploit specific features of Dutch hospitals to study income smoothing while limiting these methodological issues. The managers of Dutch hospitals have the opportunity not only to postpone revenues to future periods but also to choose the moment of recognition of the postponed revenue. These postponements and recognitions can be positive as well as negative and have to be disclosed in hospitals' financial statements. I show that the patterns found with respect to postponing revenue and the recognition of postponed revenue are consistent with the expectation that hospitals attempt to smooth their income.

AB - Research indicates that hospitals manage their earnings. However, these findings might be influenced by methodological issues. In this study, I exploit specific features of Dutch hospitals to study income smoothing while limiting these methodological issues. The managers of Dutch hospitals have the opportunity not only to postpone revenues to future periods but also to choose the moment of recognition of the postponed revenue. These postponements and recognitions can be positive as well as negative and have to be disclosed in hospitals' financial statements. I show that the patterns found with respect to postponing revenue and the recognition of postponed revenue are consistent with the expectation that hospitals attempt to smooth their income.

U2 - 10.1016/j.jaccpubpol.2014.06.005

DO - 10.1016/j.jaccpubpol.2014.06.005

M3 - Article

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SP - 510

EP - 524

JO - Journal of Accounting and Public Policy

JF - Journal of Accounting and Public Policy

SN - 0278-4254

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ER -