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10 Resources for

earnings management

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Errors in Estimating Accruals: Implications for Empirical Research
This paper examines the impact of measuring accruals as the change in successive balance sheet accounts, as opposed to measuring accruals directly from the statement of cash flows. The primary finding is that studies using a balance sheet approach to test for earnings management are potentially contaminated. In particular, if...
Tags: Balance Sheet, Accrual, University Of Iowa, Earnings Management, Operational Accounting, Balance Sheets, Finance, Financial Statements, Financial Accounting
White papers 2000-07-14
Earnings Management in Belgium: A Review of the Empirical Evidence
This paper first discusses the empirical evidence on earnings management practices by Belgian companies. This review indicates that Belgian companies manage earnings to avoid declines in earnings or losses, to influence relations with external financiers and to reduce taxes. Belgian companies quoted on the Brussels Stock Exchange also report significantly...
Tags: Katholieke Universiteit Leuven, Earnings Management, Operational Accounting, Financial Accounting, Finance
White papers 2006-01-04
Earnings Management: New Evidence Based on Deferred Tax Expense
This report assesses the usefulness of deferred tax expense in detecting earnings management. Assuming greater discretion under GAAP than under tax rules, and assuming managers exploit such discretion to manage income upward primarily in ways that do not affect current taxable income, then such earnings management will generate book-tax differences...
Tags: University Of Connecticut, Earnings Management, Taxes, Free Trade, Financial Planning, Finance
White papers 2002-11-01
Derivatives and Earnings Management
Hedging and earnings management influence performance signals from different angles, and their influence is decided by various factors. The present research analyzes the joint effect of hedging and earnings management in a two-period model. When bundled together with the use of derivatives, there is a trade-off between the higher objectivity...
Tags: Performance, University Of Florida, Derivatives, Earnings Management, Performance Management, Financial Services, Human Resources, Workforce Management
White papers 2004-01-23
Earnings Management And The Market Performance Of Acquiring Firms
From the executive summary: ‘There is evidence of a post-merger reversal of the stock price effects of the pre-merger earnings management. The results suggest that the existing evidence of post-merger under-performance by acquiring firms is attributed to reversal of the price effects of earnings management.' The paper examines the market's...
Tags: Performance, Social Science Electronic Publishing Inc., Earnings Management, Investment, Financial Accounting, Finance
White papers 2002-10-28
Earnings Management & Analysts
The paper discusses the role of analysts in the field of earnings management. Analysts play an important role in managing deals in the corporate finance scenario. They receive guidance from quarterly and annual earnings of the company. In the context of earnings management, the paper examines the role played by...
Tags: University Of Florida, Analyst, Earnings Management, Financial Accounting, Finance
Presentations 2003-01-01
Decomposing Changes in Deferred Tax Assets and Liabilities to Isolate Earnings Management Activities
This paper provides evidence on the types of accounts that reveal earnings management activities. We build on Burgstahler and Dichev's (1997) evidence of earnings management to avoid an earnings decline and Phillips et al.'s (2003) findings that deferred tax expense can be used to detect such earnings management. In particular,...
Tags: Earnings, Leadership Advantage, Earnings Management, Earnings Management Activity, Taxes, Financial Accounting, Free Trade, Operational Accounting, Financial Planning, Finance
White papers 2003-01-01
Earnings Management Preceding Reverse Leveraged Buyouts
Information asymmetry between investors and issuers of equity provides motivation and opportunities for issuers to manage earnings around the time of the offering. This study examines earnings management around the time of the equity offering of reverse LBOs. Using a sample of 225 reverse LBOs during 1980-1998, we find significantly...
Tags: LBO, Equity, Earnings Management, Mergers & Acquisitions, Financial Services, Investment, Finance
White papers 2002-02-24
Auditors and Earnings Management
This article is about Auditors who can be most effective when they understand the motivations and methods behind abusive earnings management. There are a number of incentives for managers to manipulate reported earnings, such as meeting contractual requirements or augmenting performance-based compensation. Whatever the motivation, there are as many avenues...
Tags: Earnings Management, Leadership, Operational Accounting, Financial Services, Management, Finance
White papers 2003-01-01
Earnings Management And Delisting Risk Of Initial Public Offerings
Earnings management is a corporate decision subject to costs. Both earnings management in the IPO Initial Public Offerings process and the ex ante delisting risk of newly issued firms are related to firm fundamentals. With a sample of IPOs from 1980 to 1999, it was found that the degree of...
Tags: Earnings Management, IPO, Financial Planning, Investment, Financial Services, Finance
White papers 2006-03-01

Additional Resources

Earnings Management and Cross Listing: Are Reconciled Earnings Comparable to US Earnings?
This paper compares the characteristics of US GAAP earnings for US firms with reconciled earnings for non-US firms cross listing on US markets. It is found that the reconciled earnings for non-US firms differ systematically from US GAAP earnings for US firms, and are characterized by more evidence of smoothing,...
Tags: Earnings, Financial Accounting, GAAP, Finance
White papers 2005-01-01
Corporate Governance and Earnings Management
This study investigates whether a firm's corporate governance practices have an effect on the quality of its publicly released financial information. In particular, it examines the relationship between audit committee and board of director's characteristics and the extent of corporate earnings management as measured by the level of positive and...
Tags: Corporate Earnings, Audit Committee, Accrual, Universite Laval, Corporate Governance, Corporate Law, Operational Accounting, Business Operations, Finance
White papers 2001-04-01
The Impact of Venture Capital Financing on Earnings Management and Earnings Quality
This study expands the existing earnings management research by examining earnings data of private companies prior to and after receiving venture capital VC financing. Analyses are run on a unique financial information database of 556 Belgian companies, receiving VC financing between 1987 and 1997. Each VC backed company is matched...
Tags: Katholieke Universiteit Leuven, Venture Capital, Investment, Finance, Financing Startups
White papers 2003-04-29
SAB 100 interprets rules to limit earnings management
Late last year, the SEC staff issued Staff Accounting Bulletin 100, Restructuring and Impairment Charges. SAB 100 responds to the SEC's concern that some public companies use restructurings, purchase accounting, and impairment write-offs to manage earnings in an effort to meet market expectations or maintain earnings growth. To limit...
Tags: accounting, accrual, asset, FINANCE, goodwill, impairment, MD&A, SEC, staff, termination
Research articles 2000-04-01
Abusive earnings management and early warning signs
Where does good management end and fraud begin? In Brief Fraudulent Accounting Leads to Staggering Losses Over the last three years, SEC investigations have uncovered earnings management practices that have pushed the boundaries of GAAP, even to the point of out-right fraud. In some instances,...
Tags: accounting, analyst, earnings, FINANCE, financial, GAAP, investor, reserve, revenue, SEC
Research articles 2002-08-01
Case histories of fraud and abusive earnings management.
Introduction In 1998, the SEC announced that it would target for investigation companies that it believed were engaged in abusive earnings management practices. Following its announcement, the SEC sanctioned many companies for managing earnings to meet analysts expectations, including Centennial Technologies (AAER 1311,...
Tags: accounting, Alcatel-Lucent, Cendant Corp., earnings, Enron Corp., FINANCE, financial, fraud, MicroStrategy Inc., reserve, revenue, SALES, SEC
Research articles 2002-04-01
Earnings Management, Stock Issues, and Shareholder Lawsuits
This paper studies the relations among abnormal accounting accruals measures of earnings management, stock offers, post-offer stock returns, and related shareholder lawsuits. It finds that accruals are abnormally high around stock offers, especially high for firms that are subsequently sued about their offers. These accruals tend to reverse after stock...
Tags: Shareholder, Lawsuit, Stock, Accrual, Stock Offer, Stock Return, Investment, Finance
White papers 2002-12-04
Earnings Management And Initial Public Offerings: The Case Of The Depository Industry
In a typical IPO Initial Public Offerings, insiders are "Net sellers" of IPO shares; however, in a demutualizing thrift insiders are "Net buyers" of IPO shares. Using a sample of mutual and non-mutual depository IPOs, evidence was found consistent with earnings management prior to the conversion of mutual thrifts. The...
Tags: Finance, Financial Planning, Financial Services, Investment, IPO
White papers 2006-10-01
The relation between auditors' fees for nonaudit services and earnings management.
I. INTRODUCTION This paper provides empirical evidence on the relation between auditor fees and earnings management, and between auditor fees and share values on the date the fees are disclosed. Our tests are motivated by concerns about the effect of auditors' provision of nonaudit services on the credibility...
Tags: accounting, accrual, audit, Beck, DELTA, earnings, financial, incentive, regression, SEC
Research articles 2002-12-01
Chairman Levitt attacks earnings management
At a speech on September 28, 1998-marking the creation of the Center for Law and Business at New York University under the leadership of William T. Allen, chair of the Independence Standards Board-SEC chairman Arthur Levitt, Jr., declared an all-out war on earnings management. Levitt characterized the process as a...
Tags: audit, earnings, FINANCE, financial, revenue, SEC
Research articles 1998-11-01
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