A number of studies have begun to question the appropriateness widespread and pervasive usage regressions in two-step research designs accounting literature obtain variables. The use residuals from a first-step model as dependent variable second step has been used contexts such earnings management unexpected audit fees. In this paper, I provide discussion issues within step. Taking case discret...

In this study, we examine the relationship between employee effort within firm and earnings management, using data on working hours discretionary accruals. With higher effort, find less management among U.S. firms. This result is stronger when are more predictable persists after control for endogeneity. We also smaller discontinuities with effort. Our domestic results remain same a global sampl...

Recent studies have documented that various factors such as discretionary accounting accruals, underwriter reputation, venture capital backing, and firm size will affect the long-run performance of IPOs. However, it is not clear whether the return predictability of these attributes are the manifestation of one phenomenon, or independent results. In this study, we use univariate and multivariate...

The study is an effort to fiind out the impact of earnings management on dividend payout policy for two coutries that is Pakistan and China. A set of listed Companies in both of the countries have been investigated to analyze the relationship for the year 2003 to 2007 in Pakistan and 2001 to 2007 in China. Dividend policy has been measured by dividend payout. Whereas earnings management has bee...

This paper examines the relationship of analysts’ coverage, forecasting errors and earnings management. It corroborates the role of analysts as gatekeepers by finding that analysts enhance transparency and reduce the scope of earnings management. To identify analysts’ coverage we used the I/B/E/S, from where we also obtained information on the consensus projections of analysts for listed Brazil...

We examine the role of target firms’ accruals quality (AQ) on the course of the acquisition process. We predict and find that target AQ is significantly associated with the choice of sales method (auction vs. negotiation), acquirer and target returns, the likelihood of deal completion, and the speed of the process overall. We further find that AQ has a more pronounced effect on M&A transactions...

Using historical firm financial and insider trading information, this paper examines whether high-level insiders manipulate earnings ahead of their own 10b5-1 equity transactions. The empirical evidence suggests that high-level executives appear to manipulate earnings through real activities such as abnormal discretionary expenditures and abnormal cash flows from operations to influence equity ...

The purpose of the study was to establish effect financing cash flow on stock return and test moderating discretionary accruals relationship between return. Panel data collected from 29 listed non-financial firms at NSE for 12 years 2007-2019. Fixed hierarchical regression analysis showed that had a positive significant while negatively moderate flows returns. concludes improves return, however...

Abstract In this study, we investigate the relationship between tax avoidance and earnings management in largest five European Union economies by using artificial neural network regressions. This methodology allows us to deal with nonlinearities detected data, which is principal contribution previous literature. We analyzed Compustat data for Germany, United Kingdom, France, Italy, Spain 2006–2...

This study aims to determine the effects of government size, fiscal capacity, distress, and legislature size on accrual manipulation in local financial reporting. The was conducted 23 governments Aceh with data analysis using multiple linear regressions. is extracted from audited reports for period 2016-2020. uses Modified Jones Model measure accruals. results show that distress have a negative...