The Relation of Earnings Management to Firm Size
نویسندگان
چکیده
This study examines the relation of corporate earnings management to firm size. We observe that firm size plays differing roles in earnings management: Small-sized firms engage in more earnings management to avoid reporting losses than largeor medium-sized firms. On the other hand, largeand medium-sized firms exhibit more aggressive earnings management to avoid reporting earnings decreases than small-sized firms. Our findings provide further insight into the analyses of Degeorge et al. (1999) regarding how behavioral earnings thresholds induce specific types of earnings management when firm size is considered.
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