Quarterly earnings guidance and real earnings management

Management Earnings Guidance and Crash Risk Sophia

The Effect of Disclosing Earnings Forecasting Characteristics on Company Risk concerning to Real Earnings Management

Earnings prediction is one of the most important communication channels for transferring information to investors. Despite the importance of earnings prediction, few studies examined whether  real earnings management are effective in predicting them. In this paper, the effect of earnings forecasting on firm risk is reviewed by considering real earnings management. Since earnings prediction char...

Debt covenant slack and real earnings management

We examine the relation between firms’ real earnings management decisions and the slack in their net worth debt covenant. Using private debt covenant data, we find that the overall level of real earnings management is higher when net worth covenant slack is tighter. Moreover, we find that this effect is more pronounced for loan-years with the tightest slack, which is a setting where benefits of...

Cultural Relativism in Earnings Management

The purpose of this study is to examine the possible impact of value systems on earnings management in France, Tunisia and Canada. Cultural values include power distance, uncertainty avoidance, individualism, masculinity and long-term orientation. The cross-cultural study uses the method of structural equations trough LISREL approach. The examination covers the period between 2003 and 2009. Fin...

Earnings management through real activities manipulation

I find evidence consistent with managers manipulating real activities to avoid reporting annual losses. Specifically, I find evidence suggesting price discounts to temporarily increase sales, overproduction to report lower cost of goods sold, and reduction of discretionary expenditures to improve reported margins. Cross-sectional analysis reveals that these activities are less prevalent in the ...