Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes Oxley Periods
نویسندگان
چکیده
منابع مشابه
Trends in Earnings Management and Informativeness of Earnings Announcements in the Pre- and Post-Sarbanes Oxley Periods
We document that firms’ management of accounting earnings increased steadily from 1987 until the passage of the Sarbanes Oxley Act (SOX), with a significant increase during the period prior to SOX, followed by a significant decline after passage of SOX. However, the increase in earnings management preceding SOX was primarily in poorly performing industries. We also show that the informativeness...
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Many of the papers in this special issue are concerned with regulation and some with the Sarbanes-Oxley Act (SOX). In this commentary, I will begin by summarizing the arguments for regulation that have been made in the literature.1 I will then consider whether these arguments apply to SOX. I will suggest that, rather than being based on sound principles, regulation often seems to be a consequen...
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INTRODUCTION Earnings management represents the most frequently researched topic within financial accounting in the last two decades. The use of earnings management and its almost cavalier acceptance by financial statement preparers and users during the 1990’s led to the significant corporate reporting debacles of the early 2000’s (e.g., Enron, WorldCom, HealthSouth, etc.) and ultimately to the...
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Using ratings of corporate governance developed by RiskMetrics Group (RMG), formerly Institutional Shareholder Services, we investigate whether relatively poor governance is associated with financial restatement, and whether restatement results in improved governance. We identify 150 firms that restated their 2003 financial statements to correct material error, and we use Compustat to generate ...
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Managers face a number of incentives to report earnings that meet or exceed the consensus analyst forecast. If a firm’s results of operations are not sufficient to meet the analysts’ expectations for a given period, the manager may 1) use accrual based earnings management techniques or 2) structure actual transactions to achieve the desired financial reporting result. Additionally, the manager ...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2007
ISSN: 1556-5068
DOI: 10.2139/ssrn.813088