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| earnings management through real activities manipulation: Evidence on the Tradeoff Between Real Manipulation and Accrual Manipulation: to 25; Pages:26 to 50; Pages:51 to 75; Pages:76 to 100; Pages:101 to 120 Amy Yunzhi Zang, 2000 |
| earnings management through real activities manipulation: Introduction to Earnings Management Malek El Diri, 2017-08-20 This book provides researchers and scholars with a comprehensive and up-to-date analysis of earnings management theory and literature. While it raises new questions for future research, the book can be also helpful to other parties who rely on financial reporting in making decisions like regulators, policy makers, shareholders, investors, and gatekeepers e.g., auditors and analysts. The book summarizes the existing literature and provides insight into new areas of research such as the differences between earnings management, fraud, earnings quality, impression management, and expectation management; the trade-off between earnings management activities; the special measures of earnings management; and the classification of earnings management motives based on a comprehensive theoretical framework. |
| earnings management through real activities manipulation: Earnings Management Joshua Ronen, Varda Yaari, 2008-08-06 This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models? |
| earnings management through real activities manipulation: Management Control Systems Kenneth A. Merchant, Wim A. Van der Stede, 2007 With its unique range of case studies, real life examples and comprehensive coverage of the latest management control-related tools and techniques, Management Control Systems is the ideal guide to this complex and multidimensional subject for upper level undergraduates, postgraduates and practising professionals. |
| earnings management through real activities manipulation: Research in Accounting in Emerging Economies Shahzad Uddin, Mathew Tsamenyi, 2010-12-02 Includes research papers that examines various issues including the adoption of International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSASs), management accounting change in the context of public sector reforms, corporate reporting disclosures, auditing, etcetera. |
| earnings management through real activities manipulation: Line-Item Analysis of Earnings Quality Melumad Nahum, Nahum D. Melumad, Doron Nissim, 2009 Line-Item Analysis of Earnings Quality provides a comprehensive summary and analysis of the specific earnings quality issues pertaining to key line item components of the financial statements. After providing an overview of earnings quality and earnings management, Line-Item Analysis of Earnings Quality analyzes key line items from the financial statements. For each key line item, the authors: review accounting principles; discuss implications for earnings quality; evaluate the susceptibility of the item to manipulation; describe analyses and red flags which may inform on the item's quality. Line-Item Analysis of Earnings Quality will prove useful in conducting fundamental and contextual analyses through its analysis and evaluations. |
| earnings management through real activities manipulation: Principles of Accounting Volume 1 - Financial Accounting Mitchell Franklin, Patty Graybeal, Dixon Cooper, 2019-04-11 The text and images in this book are in grayscale. A hardback color version is available. Search for ISBN 9781680922929. Principles of Accounting is designed to meet the scope and sequence requirements of a two-semester accounting course that covers the fundamentals of financial and managerial accounting. This book is specifically designed to appeal to both accounting and non-accounting majors, exposing students to the core concepts of accounting in familiar ways to build a strong foundation that can be applied across business fields. Each chapter opens with a relatable real-life scenario for today's college student. Thoughtfully designed examples are presented throughout each chapter, allowing students to build on emerging accounting knowledge. Concepts are further reinforced through applicable connections to more detailed business processes. Students are immersed in the why as well as the how aspects of accounting in order to reinforce concepts and promote comprehension over rote memorization. |
| earnings management through real activities manipulation: The Oxford Handbook of Strategy Implementation Michael A. Hitt, 2017 Leading scholars examine the crucial role of implementation influencing how business and managerial strategies produce returns. They focus on governance, resources, human capital, and accounting-based control systems, advancing our understanding of strategy implementation and identifying opportunities for future research on this important process. |
| earnings management through real activities manipulation: Earnings Quality Jennifer Francis, Per Olsson, Katherine Schipper, 2008 This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship. |
| earnings management through real activities manipulation: Encyclopedia of Finance Cheng-Few Lee, 2006-07-27 This is a major new reference work covering all aspects of finance. Coverage includes finance (financial management, security analysis, portfolio management, financial markets and instruments, insurance, real estate, options and futures, international finance) and statistical applications in finance (applications in portfolio analysis, option pricing models and financial research). The project is designed to attract both an academic and professional market. It also has an international approach to ensure its maximum appeal. The Editors' wish is that the readers will find the encyclopedia to be an invaluable resource. |
| earnings management through real activities manipulation: Earnings Quality Patricia M. Dechow, Catherine Schrand, 2004-01-01 |
| earnings management through real activities manipulation: Earnings Management, Conservatism, and Earnings Quality Ralf Ewert, Alfred Wagenhofer, 2012 Earnings Management, Conservatism, and Earnings Quality reviews and illustrates earnings management, conservatism, and their effects on earnings quality in an economic modeling framework. Both earnings management and conservative accounting introduce biases to financial reports. The fundamental issue addressed is what economic effects these biases have on earnings quality or financial reporting quality. Earnings Management, Conservatism, and Earnings Quality reviews analytical models of earnings management and conservatism and shows that both can have beneficial or detrimental economic effects, so a differentiated view is appropriate. Earnings management can provide additional information via the financial reporting communication channel, but it can also be used to misrepresent the firm's position. What the authors find is that similar to earnings management, conservatism can reduce the information content of financial reports if it suppresses relevant information, but it can be a desirable feature that improves economic efficiency. The approach to study earnings management, conservatism, and earnings quality is based on the information economics literature. A variety of analytical models are reviewed that capture the effects and subtle interactions of managers' incentives and rational expectations of users. The benefit of analytical models is to make precise these, often highly complex, strategic effects. They offer a rigorous explanation for the phenomena and show that sometimes conventional wisdom does not apply. The monograph is organized around a few basic model settings, which are presented in simple versions first and then in extensions to elicit the main insights most clearly. Chapter 2 presents the basic rational expectations equilibrium model with earnings management and rational inferences by the capital market. Chapter 3 is devoted to earnings quality and earnings quality metrics used in many studies. Chapter 4 studies conservatism in accounting. Finally, the authors examine the interaction between conservatism and earnings management. Each chapter ends with a section containing a summary of the main findings and conclusions. |
| earnings management through real activities manipulation: Investor Protection and Corporate Governance Alberto Chong, Florencio Lopez de Silanes, 2007-06-26 'Investor Protection and Corporate Governance' analyzes the impact of corporate governance on firm performance and valuation. Using unique datasets gathered at the firm-level the first such data in the region and results from a homogeneous corporate governance questionnaire, the book examines corporate governance characteristics, ownership structures, dividend policies, and performance measures. The book's analysis reveals the very high levels of ownership and voting rights concentrations and monolithic governance structures in the largest samples of Latin American companies up to now, and new data emphasize the importance of specific characteristics of the investor protection regimes in several Latin American countries. By and large, those firms with better governance measures across several dimensions are granted higher valuations and thus lower cost of capital. This title will be useful to researchers, policy makers, government officials, and other professionals involved in corporate governance, economic policy, and business finance, law, and management. |
| earnings management through real activities manipulation: Earnings Quality Elisa Menicucci, 2019-12-21 This book provides an overview of earnings quality (EQ) in the context of financial reporting and offers suggestions for defining and measuring it. Although EQ has received increasing attention from investors, creditors, regulators, and researchers in different areas, there are various definitions of it and different approaches for its measurement. The book describes the relationship between EQ and earnings management (EM) since they can be considered related challenges, especially in the context of international financial reporting standards (IAS/IFRSs). EM occurs when managers make discretionary accounting choices that are regarded as either an efficient communication of private information to improve the informativeness of a firm’s current and future performance, or a distorting disclosure to mislead the firm’s true performance. The intentional manipulation of earnings by managers, within the limits allowed by the accounting standards, may alter the usefulness of financial reporting and lead to lower quality of earnings. The use of fair value in financial reporting has created a current debate about the impact it might have on EQ. At times, the high subjectivity in estimating fair value can allow opportunities for the exercise of management judgments and intentional bias, which can reduce the quality of financial reporting. Management discretion can result in high EM and hence in a reduction of EQ. Particularly during difficult financial periods, managers engage in EM to mask the negative effects of the turmoil, and in such circumstances accruals and earnings smoothing are attempts to reduce abnormal variations of earnings in such circumstances. This book is a valuable resource for those interested in wider perspectives on EQ and it adds to the research studies on this topic in the context of financial reporting. |
| earnings management through real activities manipulation: The Financial Numbers Game Charles W. Mulford, Eugene E. Comiskey, 2011-03-10 Praise for The Financial Numbers Game So much for the notion 'those who can, do-those who can't, teach.' Mulford and Comiskey function successfully both as college professors and real-world financial mercenaries. These guys know their balance sheets. The Financial Numbers Game should serve as a survival manual for both serious individual investors and industry pros who study and act upon the interpretation of financial statements. This unique blend of battle-earned scholarship and quality writing is a must-read/must-have reference for serious financial statement analysis. --Bob Acker, Editor/Publisher, The Acker Letter Wall Street's unforgiving attention to quarterly earnings presents ever increasing pressure on CFOs to manage earnings and expectations. The Financial Numbers Game provides a clear explanation of the ways in which management can stretch, bend, and break accounting rules to reach the desired bottom line. This arms the serious investor or financial analyst with the healthy skepticism required to drive beyond reported results to a clear understanding of a firm's true performance. --Mark Hurley, Managing Director, Training and Development, Global Corporate and Investment Banking, Bank of America After reading The Financial Numbers Game, I feel as though I've taken a master's level course in financial statement analysis. Mulford and Comiskey's latest book should be required reading for anyone who is serious about fundamentally analyzing stocks. --Harry Domash, San Francisco Chronicle investing columnist and investment newsletter publisher |
| earnings management through real activities manipulation: Public Disclosure of Corporate Earnings Forecasts Francis A. Lees, 1981 |
| earnings management through real activities manipulation: Ethnostatistics Robert P. Gephart, 1988-02-01 This volume discusses ethnostatistics - the interpretative study of the construction and use of statistics in social research - and will be of equal interest to qualitative and quantitative researchers across the social sciences. On the understanding that the development of a statistic is inherently a qualitative act, the author shows how this act can be studied and analyzed. The interpretative factors in statistical work can be demonstrated at a variety of levels; Gephart shows how each can be usefully illuminated through the use of ethnostatistics to produce more effective, reflexive social research. |
| earnings management through real activities manipulation: Positive Accounting Theory Ross L. Watts, Jerold L. Zimmerman, 2004 |
| earnings management through real activities manipulation: Advances in International Accounting J. Timothy Sale, 2003-09-30 This is a refereed, academic research annual, devoted to publishing articles about advancements in the development of accounting and its related disciplines from an international perspective. This serial examines how these developments affect the financial reporting and disclosure practices, taxation, management accounting practices, and auditing of multinational corporations, as well as their effect on the education of professional accountants worldwide. |
| earnings management through real activities manipulation: A Practical Guide to Private Equity Transactions Geoff Yates, Mike Hinchliffe, 2010-02-18 This overview of a complex and often misunderstood subject takes the reader through the issues that are faced throughout the life cycle of a private equity investment, from the identification of an opportunity, through the various stages of the transaction and the lifetime of the investment, to the eventual exit by the investor. The analysis of key documentation and legal issues covers company law, employment law, pensions, taxation, debt funding and competition law, taking into account recent legal developments such as the Companies Act 2006, the recent emergence of private equity in the UK and the challenges faced by the industry as a result of the financial crisis. |
| earnings management through real activities manipulation: The Effects of Competition George Symeonidis, 2002-01-18 A theoretical and empirical study of the effects of competition across a broad range of industries. Policies to promote competition are high on the political agenda worldwide. But in a constantly changing marketplace, the effects of more intense competition on firm conduct, market structure, and industry performance are often hard to distinguish. This study combines game-theoretic models with empirical evidence from a natural experiment of policy reform. The introduction in the United Kingdom of the 1956 Restrictive Trade Practices Act led to the registration and subsequent abolition of explicit restrictive agreements between firms and the intensification of price competition across a range of manufacturing industries. An equally large number of industries were not affected by the legislation. Using data from before and after the 1956 act, this book compares the two groups of industries to determine the effect of price competition on concentration, firm and plant numbers, profitability, advertising intensity, and innovation. The book avoids two problems common to empirical studies of competition: how to measure the intensity of competition and how to unravel the links between competition and other variables. Because the change in the intensity of competition had an external cause, there is no need to measure the intensity of competition directly, and it is possible to identify one-way causal effects when estimating the impact of competition. The book also examines issues such as the industries in which collusion is more likely to occur; the effect of cartels and cartel laws on market structure and profitability; the links between competition, advertising, and innovation; and the constraints on the exercise of merger and antitrust policies. |
| earnings management through real activities manipulation: Earnings Management Thomas E. McKee, 2005 Learn how to legally manage your earnings with EARNINGS MANAGEMENT! This finance text demystifies earnings management and provides you with 28 reasonable and legal techniques. Read this text and you will gain valuable knowledge about earning management concepts and tools and gain insight into the management decisions that can shape financial statements and the underlying quality of the earnings. |
| earnings management through real activities manipulation: Product Market Competition and Agency Costs Jennifer Jane Baggs, Statistics Canada. Analytical Studies Branch, Jean-Etienne de Bettignies, Statistics Canada. Business and Labour Market Analysis Division, 2006 Economists have long held the belief that competition improves efficiency. One of the mechanisms suggested is that product market competition alleviates agency costs, which in turn many enable firms to induce higher effort and greater efficiency from their managers. In this way, competition mitigates what Leibenstein (1966) called 'X-inefficiencies.' Despite growing interest, an unambiguous theoretical formulation for this 'vague suspicion' has proved difficult to obtain. In this paper we examine the impact of competition on efficiency both theoretically and empirically. The main theoretical contribution of this paper is to show that product market competition can have a direct, and ambiguously positive effect on managerial incentives.--Unedited text from document. |
| earnings management through real activities manipulation: Boards at Work : How Directors View their Roles and Responsibilities Philip Stiles, Bernard Taylor, 2001-03-29 Boards of directors are coming under increasing scrutiny in terms of their contribution in monitoring and controlling management, particularly in the wake of high-profile corporate frauds and failures, and also their potential to add value to organizational performance through involvement in the strategy process and through building relationships with key investors. Despite the importance of these issues, not only to organizations but also arguably to national competitiveness, the nature of board activity remains largely a black box, clouded by prescriptions, prejudices, and half-truths. This book responds to calls for greater scrutiny of boards of directors with an in-depth examination of directors of UK organizations, drawing on the accounts of directors themselves as to their roles, influence, and the potential and limits to their power. Much work on boards of directors has labelled the board as a rubber stamp for dominant management, and non-executive directors in particular have been variously described as poodles, pet rocks, or parsley on the fish. Such accounts are rooted in assumptions of board activity that are essentially adversarial in nature, and that the solution to the 'problem' of reconciling the interests of managers with those of shareholders is to increase the checks and balances available to the board of directors. The findings of this study show that boards, in many cases, are far more than passive rubber stamps for management and that non-executives are encouraged to act as trusted advisers to the executives and the chief executive, rather than solely monitors of executive activity. Boards are important mechanisms in maintaining the strategic framework of the organization through setting the boundaries of organizational activity. The potential of the board members, in particular the non-executives, to fulfil such a mandate depends on a number of factors, including ability, willingness to engage with the organizational issues, and the degree of knowledge they have relevant to the host firm. Above all, the degree of trust built between members of the board, and between the board and key external constituencies, is at the heart of effective board behaviour. |
| earnings management through real activities manipulation: Global Financial Development Report 2015/2016 The World Bank, 2015-08-31 Global Financial Development Report 2015/2016 focuses on the ability of financial systems to sustainably extend the maturity of financial contracts for private agents. The challenges of extending the maturity structure of finance are often considered to be at the core of effective, sustainable financial development. Sustainably extending long-term finance may contribute to the objectives of higher growth and welfare, shared prosperity and stability in two ways: by reducing rollover risks for borrowers, thereby lengthening the horizon of investments; and by increasing the availability of long-term financial instruments, thereby allowing households to address their lifecycle challenges. The aim of the report is to contribute to the global policy debate on long-term finance. It builds upon findings from recent and ongoing research, lessons from operational work, as well as on inputs from financial sector professionals and researchers both within and outside the World Bank Group. Benefitting from new worldwide datasets and information on financial development, it will provide a broad and balanced review of the evidence and distill pragmatic lessons on long-term finance and related policies. This report, the third in the Global Financial Development Report series, follows the second issue on Financial Inclusion and the inaugural issue, Rethinking the Role of the State in Finance. The Global Financial Development Report 2015/2016 will be accompanied by a website worldbank.org/financialdevelopment containing extensive datasets, research papers, and other background materials as well as interactive features. |
| earnings management through real activities manipulation: The world price of earnings opacity Uptal Bhattacharya, Hazem Daouk, Michael Welker (ekonomist.), 2002 |
| earnings management through real activities manipulation: Earnings Accruals and Real Activities Management around Initial Public Offerings Peter Ising, 2013-10-06 The beginning of the new millennium was characterized by company scandals in accounting around the world. A transparent and fair presentation of financial statements is beneficial for capital market participants. Especially around initial public offerings different incentives of these players exist to influence financial statements in diverse aspects. Therefore, studies of earnings management try to identify abnormal behavior. Peter Ising covers additional aspects to shed light on substantial drivers of discretionary reporting behavior around going public. Factors like influence on real activities, industry affiliation, and specific years in the IPO process add further insight to this theoretical and practical topic. The dependence on these factors is high and confirms that company specifics are important for interpretation of financial results. |
| earnings management through real activities manipulation: Smoothing Income Numbers Joshua Ronen, Simcha Sadan, 1981-01-01 |
| earnings management through real activities manipulation: The Performance of Private Equity Funds Ludovic Phalippou, 2010 The performance of private equity funds as reported by industry associations and previous research is overstated. A large part of performance is driven by inflated accounting valuation of ongoing investments and we find a bias toward better performing funds in the data. We find an average net-of-fees fund performance of 3% per year below that of the Samp;P 500. Adjusting for risk brings the underperformance to 6% per year. We estimate fees to be 6% per year. We discuss several misleading aspects of performance reporting and some side benefits as a first step toward an explanation. |
| earnings management through real activities manipulation: Accounting Theory Jayne Godfrey, Allan Hodgson, Scott Holmes, 2003-07-25 Accounting Theory 5th edition is the new edition of the market leading theory textbook. The 5th edition has been updated to enhance student understanding of the role of accounting theory and the application of accounting theory in the professional environment. Increasingly, students have failed to appreciate the relevance of studying accounting theory due to the esoteric nature of the discipline and its lack of any obvious correlation to a discrete accounting process. The new edition addresses this issue and makes the link to industry more clear through chapter vignettes and case studies. The new edition goes further to align the study of accounting theory to the professional environment domestically and internationally. To achieve this, the new edition includes a International View vignette in each chapter to profile the international response or thinking on relevant issues, ?Theory in Action? boxes illustrate the chapter material by way of presenting professional examples to build understanding and end of chapter case studies have develop and apply student understanding of the material. The new edition continues to provide the latest research and the most comprehensive discussion of material whilst maintaining its critical perspective. |
| earnings management through real activities manipulation: Taxes and Business Strategy Myron S. Scholes, Mark A. Wolfson, Merle M. Erickson, Michelle L. Hanlon, Edward L. Maydew, Terrence J. Shevlin, 2015-01-03 For MBA students and graduates embarking on careers in investment banking, corporate finance, strategy consulting, money management, or venture capital Through integration with traditional MBA topics, Taxes and Business Strategy, Fifth Edition provides a framework for understanding how taxes affect decision-making, asset prices, equilibrium returns, and the financial and operational structure of firms. Teaching and Learning Experience This program presents a better teaching and learning experience-for you and your students: *Use a text from an active author team: All 5 authors actively teach the tax and business strategy course and provide students with relevant examples from both classroom and real-world consulting experience. *Teach students the practical uses for business strategy: Students learn important concepts that can be applied to their own lives. *Reinforce learning by using in-depth analysis: Analysis and explanatory material help students understand, think about, and retain information. |
| earnings management through real activities manipulation: Financial Reporting and Analysis Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, 2008-06-30 Financial Reporting & Analysis (FR&A) by Revsine/Collins/Johnson/Mittelstaedt emphasizes both the process of financial reporting and the analysis of financial statements. This book employs a true user perspective by discussing the contracting and decision implications of accounting and this helps readers understand why accounting choices matter and to whom. Revsine, Collins, Johnson, and Mittelstaedt train their readers to be good financial detectives, able to read, use, and interpret the statements and-most importantly understand how and why managers can utilize the flexibility in GAAP to manipulate the numbers for their own purposes. |
| earnings management through real activities manipulation: Quantitative Data Analysis with SPSS for Windows Alan Bryman, Duncan Cramer, 1997-01 Quantitative Data Analysis with SPSS for Windows explains statistical tests using the latest version of SPSS, the most widely used computer package for analysing quantitative data. Using the same formula-free, non-technical approach as the highly successful non-windows version, it assumes no previous familiarity with either statistics or computing, and takes the reader step-by-step through each of the techniques for which SPSS for Windows can be used, including: correlation simple and multiple regression multivariate analysis of variance and covariance factor analysis The book also contains a comprehensive range of exercises with answers, and covers issues such as sampling, statistical significance, and the selection of appropriate tests. |
| earnings management through real activities manipulation: Defense Procurement Fraud United States. Department of Justice. Office of Legal Education, 1990 |
| earnings management through real activities manipulation: Proceedings of the 4th International Conference on Research in Management and Technovation Thi Hong Nga Nguyen, |
| earnings management through real activities manipulation: Dividend-based Earnings Management Eero Kasanen, 1992 |
| earnings management through real activities manipulation: Public Sector Accountants and Quantum Leap: How Far We Can Survive in Industrial Revolution 4.0? Akhmad Solikin, Yuniarto Hadiwibowo, Benny Setiawan, Amrie Firmansyah, Hendrati Dwi Mulyaningsih, 2020-08-07 The Industrial Revolution 4.0 will not only cause job losses, but will also create new workspaces that may not exist today. It also needs to be considered by accountants in government because the processes of budget planning, budget execution, and financial reporting have used a large number of information systems. In the era of the Industrial Revolution 4.0, the changes will be faster, marked by the emergence of such systems as supercomputers, smart robots, cloud computing, big data systems, genetic engineering and the development of neurotechnology that allows humans to optimize brain function further. Industrial Revolution 4.0 will disrupt the accounting profession. This proceedings provides selected papers/research on government accounting, accountability and integrity public sector accounting, financial accounting, accounting information system, auditing and assurance, corporate sustainability, forensic and management accounting, public and corporate finance, taxation and customs, open innovation in public sector accounting. The proceedings provide details beyond what is possible to be included in an oral presentation and constitute a concise but timely medium for the dissemination of recent research results. It will be invaluable to professionals and academics in the field of accounting, finance and the public sector to get an understanding of recent research. |
| earnings management through real activities manipulation: Earnings Management and Corporate Finance Joanna Lizińska, Marzena Remlein, Leszek Czapiewski, 2024-07-01 In today's dynamic landscape of accounting, corporate finance, and business management, earnings management has assumed paramount importance. Transparent and reliable accounting information is crucial for accurate corporate performance forecasting and financial decision-making. This book uniquely discusses practical earnings management methods within the accounting and taxation realms. It is supported by extensive international evidence linking informativeness of financial reports to companies’ financial decisions. Delving into the earnings management process, this book provides profound insights into how profits can be influenced through accounting choices and real business transactions. Real-life case studies will undoubtedly facilitate the understanding of accounting and taxation methods. Additionally, it unravels key elements of corporate finance puzzles related to the transparency of financial reports, including the macroeconomic environment, profit thresholds, cash management, audit quality, financing decisions, and financial health. With broad empirical evidence from various European countries, it multidimensionally explores the important link between the quality of information in financial statements and trade-offs behind financial decisions. The book serves as a valuable reference for international researchers in corporate finance, accounting, and corporate governance. It is also a powerful tool for business practitioners, including owners, lenders, auditors, regulatory and professional bodies, business partners, or other market participants. For those seeking the latest insights on earnings management, those producing or assessing accounting information, and those using financial reports in their research or business practice, this book is a must-read. |
| earnings management through real activities manipulation: Research on Professional Responsibility and Ethics in Accounting Tara J. Shawver, 2023-03-30 This 25th edition of Research on Professional Responsibility and Ethics in Accounting explores many aspects across professional responsibility and ethics in accounting, including balancing values vs profits, whistleblowing, earnings management, ethical financial reporting, and moral identity. |
| earnings management through real activities manipulation: Quantitative Analysis of Social and Financial Market Development William A. Barnett, Bruno S. Sergi, 2022-10-03 Quantitative Analysis of Social and Financial Market Development is a crucial resource of current, cutting-edge research exploring the latest social and financial developments across Asia. |
Earnings management through real activities manipulation$
Real activities manipulation is defined as management actions that deviate from normal business practices, undertaken with the primary objective of meeting certain earnings thresholds. The …
Earnings Management Using Real Activities - JSTOR
ABSTRACT: We extend the literature on earnings management through real operating decisions by providing insight into the types of expenditures (core versus noncore and operating versus …
A Simple Approach to Better Distinguish Real Earnings …
Researchers typically infer real earnings management when a firm’s operating and investing activi-ties differ from industry norms. A significant problem with classifying deviations from …
Accrual Manipulation and Real Earnings Management …
In this paper weexamine both real and accrual-based earnings management activities around the time of debt covenant violations. Positive accounting theory suggests that firms approaching …
The Impact of IFRS Adoption on Real Activities Manipulation: …
We look at mandatory IFRS adoption in China from the view of earnings management and investigate how these significant changes have influenced earnings management in terms of …
The Influence Of Earnings Management through Real …
In the work, we highlight some certain methods of real activities manipulation which help companies reduce losses and avoid bankruptcy efficiently, and the relative consequences of …
Earnings Management through Real Activities Manipulation
Real activities manipulation is defined as management actions that deviate from normal business practices, undertaken with the primary objective of meeting certain earnings thresholds.
Earnings management through real activities manipulation …
Earnings manipulation prior to a merger and acquisition (M&A) is an important strategy used to increase the stock price. One way to manage earnings is through manipulation of accruals …
ACCOUNTING-BASED EARNINGS MANAGEMENT AND REAL …
choices of two earnings management vehicles: earnings management through changing operating decisions (i.e., real activities manipulation) and through manipulating accounting accruals (i.e., …
Real activities manipulation and firm valuation - Springer
To assess the true effect of earnings manipulation on firm value, we consider real activities manipulations (RM) instead of discretionary accruals (AM) for the following reasons.
Earnings management through real activities manipulation
Real activities manipulation is defined as management actions that deviate from normal business practices, undertaken with the primary objective of meeting certain earnings thresholds. The …
Earnings Management through Real Activities and Its Impact …
One way to polish financial statements is by doing earnings management. Earnings management can be done in two ways namely the manipulation of accruals and real manipulation.
The relation between earnings management using real …
This study focuses on the following four types of real activities manipulation demonstrated to exist empirically in the prior literature: (1) Decreasing discretionary R&D expense (R&D RM)
Earnings Management Through Real Activities Manipulation …
Earnings Management Using Real Activities Manipulation and Future Performance Katherine Gunny,2012 This paper examines the consequences of real activities manipulation Using …
EARNINGS MANAGEMENT THROUGH REAL ACTIVITIES …
EARNINGS MANAGEMENT THROUGH REAL ACTIVITIES MANIPULATION (Empirical Study of Manufacturing Companies Listed on Indonesia Stock Exchange from 2009 – 2011) Presented …
Real earnings management and future performance: a test of …
Most existing research on earnings management has concentrated on accrual-based earnings management (AEM), in which earnings are managed by manipulating accruals without directly …
The role of earnings management via real activities and …
We study the role of earnings man-agement around PIPE transactions and the relative use of real versus accrual-based earn-ings management.
ACCRUAL-BASED EARNINGS MANAGEMENT AND REAL …
Consistent with previous articles, we find evidence suggesting income increase by accrual-based earnings management, price discounts to boost sales temporarily and reduction of …
Earnings Management Through Real Activities Manipulation
Earnings Management Through Real Activities Manipulation Sugata Roychowdhury,2006 I find evidence consistent with managers manipulating real activities to avoid reporting annual …
Earnings Management Through Real Activities Manipulation
Earnings Management Through Real Activities Manipulation Sugata Roychowdhury,2006 I find evidence consistent with managers manipulating real activities to avoid reporting annual …
Earnings management through real activities manipulation$
Real activities manipulation is defined as management actions that deviate from normal business practices, undertaken with the primary objective of meeting certain earnings thresholds. The …
Earnings Management Using Real Activities - JSTOR
ABSTRACT: We extend the literature on earnings management through real operating decisions by providing insight into the types of expenditures (core versus noncore and operating versus …
A Simple Approach to Better Distinguish Real Earnings …
Researchers typically infer real earnings management when a firm’s operating and investing activi-ties differ from industry norms. A significant problem with classifying deviations from …
Accrual Manipulation and Real Earnings Management …
In this paper weexamine both real and accrual-based earnings management activities around the time of debt covenant violations. Positive accounting theory suggests that firms approaching …
The Impact of IFRS Adoption on Real Activities …
We look at mandatory IFRS adoption in China from the view of earnings management and investigate how these significant changes have influenced earnings management in terms of …
The Influence Of Earnings Management through Real …
In the work, we highlight some certain methods of real activities manipulation which help companies reduce losses and avoid bankruptcy efficiently, and the relative consequences of …
Earnings Management through Real Activities …
Real activities manipulation is defined as management actions that deviate from normal business practices, undertaken with the primary objective of meeting certain earnings thresholds.
Earnings management through real activities …
Earnings manipulation prior to a merger and acquisition (M&A) is an important strategy used to increase the stock price. One way to manage earnings is through manipulation of accruals …
ACCOUNTING-BASED EARNINGS MANAGEMENT AND …
choices of two earnings management vehicles: earnings management through changing operating decisions (i.e., real activities manipulation) and through manipulating accounting accruals (i.e., …
Real activities manipulation and firm valuation - Springer
To assess the true effect of earnings manipulation on firm value, we consider real activities manipulations (RM) instead of discretionary accruals (AM) for the following reasons.
Earnings management through real activities …
Real activities manipulation is defined as management actions that deviate from normal business practices, undertaken with the primary objective of meeting certain earnings thresholds. The …
Earnings Management through Real Activities and Its …
One way to polish financial statements is by doing earnings management. Earnings management can be done in two ways namely the manipulation of accruals and real manipulation.
The relation between earnings management using real …
This study focuses on the following four types of real activities manipulation demonstrated to exist empirically in the prior literature: (1) Decreasing discretionary R&D expense (R&D RM)
Earnings Management Through Real Activities …
Earnings Management Using Real Activities Manipulation and Future Performance Katherine Gunny,2012 This paper examines the consequences of real activities manipulation Using …
EARNINGS MANAGEMENT THROUGH REAL ACTIVITIES …
EARNINGS MANAGEMENT THROUGH REAL ACTIVITIES MANIPULATION (Empirical Study of Manufacturing Companies Listed on Indonesia Stock Exchange from 2009 – 2011) Presented …
Real earnings management and future performance: a test …
Most existing research on earnings management has concentrated on accrual-based earnings management (AEM), in which earnings are managed by manipulating accruals without directly …
The role of earnings management via real activities and …
We study the role of earnings man-agement around PIPE transactions and the relative use of real versus accrual-based earn-ings management.
ACCRUAL-BASED EARNINGS MANAGEMENT AND REAL …
Consistent with previous articles, we find evidence suggesting income increase by accrual-based earnings management, price discounts to boost sales temporarily and reduction of …
Earnings Management Through Real Activities Manipulation
Earnings Management Through Real Activities Manipulation Sugata Roychowdhury,2006 I find evidence consistent with managers manipulating real activities to avoid reporting annual …
Earnings Management Through Real Activities Manipulation
Earnings Management Through Real Activities Manipulation Sugata Roychowdhury,2006 I find evidence consistent with managers manipulating real activities to avoid reporting annual …
