Do Fictitiously High Asset Growth Rates Drive the Asset Growth Anomaly?

Purpose: This paper investigates whether the well-documented asset growth anomaly can be related to information uncertainty due earnings management. Design/Methodology/Approach: We perform both portfolio-based and regression-based analyses. employ 5 Variable Version of Beneish model (Beneish, 1999) as an management proxy Piotroski’s (2000) FSCORE a for firms’ fundamental strength. Findings: Overall, our evidence suggests that driven by high firms, manipulating their accounting figures. Originality: Given implicit inferences attribute phenomenon mainly employing country-level proxies, we provide new insights variables measured at firm level.