Debt Maturity Structure and Earnings Management
نویسنده
چکیده
We examine the relation between firms' debt maturity structures and the propensity to manage earnings. Our results indicate that (i) firms with more current debt are more susceptible to managing earnings, (ii) this relation is stronger for firms facing debt market constraints (those without investment grade debt) and (iii) auditor characteristics such as auditor quality and tenure help diminish this relation. Overall, our results indicate that earnings management by firms is influenced by the relative amount of short-term debt used in firms' capital structures.
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