Earnings Management, Earnings Surprises, and Distressed Firms

Firms, Assignments, and Earnings

T he U.S. distribution of labor earnings is highly skewed to the right. Roughly, the lowest 50 percent of U.S. households, as measured by individual labor earnings, make 10 percent of total labor earnings. The next lowest 30 percent earn approximately 30 percent and highest 10 percent make 40 percent.1 Earnings are also related to a person’s position within a firm and employment at a particular...

Earnings Management and the Effect of Earnings Quality in Relation to Bankruptcy Level (Firms Listed at the Tehran Stock Exchange)

This paper investigates the relationship between earnings management and quality of earnings for the bankrupt and non-bankrupt firms listed in the Tehran Stock Exchange from 2007 to 2012.The earnings quality  is measured by four separate accounting-based earnings attributes: accruals quality, earnings persistence, earnings predictability; earnings and is also examined by testing the relationshi...

Small Trader Reactions to Consecutive Earnings Surprises

This paper tests whether traders react more strongly as a series of similar earnings surprises continues, as predicted by several important behavioral finance models. We compile measures of buying and selling from NYSE TAQ data for a large ten-year sample. Results show strong, consistent, evidence that small traders exhibit an increasing reaction – with significant increases in reaction strengt...

Earnings Management and Delisting Risk: The Case of IPO Firms

Chairman Characteristics and Earnings Management: Evidence from Chinese Listed Firms

Using a large sample of Chinese listed companies during period from 2005 to 2014, this paper investigates whether the managerial characteristics of Chairman affect earnings management. Using McNichols [1] accrual-based and Roychowdhury [2] real earning management, we find that companies with female, long-tenured, older and more educated Chairman have lower absolute discretionary accruals and lo...