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ISSN: 2168-9601

Journal of Accounting & Marketing
Open Access

Income Smoothing

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Income Smoothing

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Income Smoothing

Income Smoothing is the use of accounting techniques to level out net income fluctuations from one period to the next. Companies indulge in this practice because investors are generally willing to pay a premium for stocks with steady and predictable earnings streams, compared with stocks whose earnings are subject to wild fluctuations.

Related Journals: Indian Journal of Finance, The Journal of Finance, Information and Management, Industrial Marketing Management, Accounting & Taxation, Accounting and Finance

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