This paper examines the usefulness of accounting information in predicting earnings management. We investigate a comprehensive sample of firms from 1971-2000 that restated annual earnings. We find that firms restating earnings have high market expectations for future earnings growth and have higher levels of outstanding debt. We also find that a primary motivation for the earnings manipulation ...

Article history: Received 26 May 2011 Received in revised form 5 March 2012 Accepted 6 March 2012 Current auditing standards require auditors to conduct a fraud brainstorming session aimed at considering ways in which the audit client's financial statements might be fraudulently misstated. Lynch et al. (2009) document that computer-mediated fraud brainstorming is significantly more effective th...

This paper characterizes the optimal linear financial transaction tax in an equilibrium model of competitive financial markets. As long as investors hold heterogeneous beliefs about the returns of assets in fixed supply and the planner calculates welfare using any single belief, we expect the optimal tax to be positive, even when a fraction of trading is fundamental. Strikingly, the optimal tax...

The research process started in the first week of August 10, 2014 and ended early February 2015, obtaining qualified data for 330 patients from many hospitals in northern Vietnam. Its expansion was performed for an enlarged dataset through May 2015, containing 900 records. This article exemplifies the attempt to examine the likelihood of destitution among Vietnamese patients due to insufficient...

V. Grosu, I. Bostan, “Stefan cel Mare”University, Faculty of Economics, Suceava, Romania. In light of the eff ects of the economic-fi nancial crisis and of the numerous changes occurring both on a European and a global level and altering the environment of the metalworking sector, the aim of the present paper is to focus on the specifi c alterations performed in the audit of the economic and fi...

Imagine that you are considering an investment in a new public offering of a firm’s shares. The firm’s officers have visited your city to make a presentation which included an audited financial statement, an earnings forecast was reviewed by its prestigious investment bankers, and an impressive demonstration of it new technology. Should such a presentation convince you to invest? How concerned ...

The TAF and other lending facilities established during the crisis were an experiment that proved effective in addressing severe financial turbulence. In the second half of 2007, financial turmoil swept over the U.s. and other major economies. Triggered by a subprime mortgage meltdown, the crisis quickly spread to other major financial markets and precipitated the worst economic downturn since ...

Working papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views stated herein are those of the authors and are not necessarily those of the Federal Reserve Bank...

We study the effects of the interplay between banking deregulation and corporate governance on the lending behavior of savings banks in Spain. The removal of branching barriers that constrained these banks has led to a nationwide expansion, increasing the number of their branches and their commercial lending volume dramatically. Analyzing a unique data set combining information on the geographi...

Purpose – The purpose of this paper is to analyse regulatory reform in the wake of the financial crisis of 2007-2008. Design/methodology/approach – The paper proposes a framework for regulatory reform that begins with the observation that financial manias and panics cannot be legislated away, and may be an unavoidable aspect of modern capitalism. Findings – Financial crises are unavoidable when...