This paper examines the relation between earnings management and corporate governance in China by introducing a tunneling perspective. We document systematic differences in earnings management across the universe of China's listed companies during 1999–2005, and empirically demonstrate that firms with higher corporate governance levels have lower levels of earnings management. We study two Chin...

We argue that high quality firms that expect larger quantity of cash flows in the near future are more likely to actively smooth earnings via discretionary accruals before seasonal equity offerings to reduce underpricing. If high quality firms are confident about future earnings, it is also plausible to assume that they also push their offer prices up more aggressively, and lessen the degree of...

The concept of sustainability has been gaining importance all over the world. Concerns consumers, investors, fund providers and governmental organizations about motivate companies to take action for a more sustainable Stock exchanges have also created related indices. starting point this study is assumption that in index are respectful environment, society economy therefore, they trustworthy wh...

This study investigates whether Australian targets manage their earnings during takeover bids. A sample of 65 firm-years that were subject to takeover offers during the period 1999-2003 is selected. Each treatment firm-year is matched by industry and size with a control firm-year not subject to a takeover bid. Three Discretionary Accruals models are used: the DeAngelo (1986) model, the Jones (1...

This study examines the link between disclosure, cash flow uncertainty, and the option value of equity. Building upon Merton (1974), I model the equity of a levered firm as a call option whose equilibrium value is increasing in the variance of future cash flows. Modeling levered equity as an option allows for calculation of the firm’s vega, where vega measures the sensitivity of equity value to...

This study investigates the effect of analyst coverage on both accrual-based and real earnings management. Regarding accrual-based earnings management, I find that firms followed by more analysts engage in less accruals management and that more experienced analysts seem to be more effective in constraining accruals management, consistent with the role of analysts as external monitors to manager...

The purpose of this study is presenting a model forecasting financial crisis in Tehran Stock Exchange listed companies. To do this, productive firms that had been accepted in Tehran Stock Exchange between 2002 and 2009, were selected as the study sample. First the independent variables were obtained based on financial ratios and then based on Article 141 of the Law of Commerce, the insolvent an...

Recent accounting and management literature shows that demographic character-istics of top management and corporate performance are related. Accordingly, using a two-stage least squares regression model (2SLS), this study examines the relationship between some management demographic characteristics including CEO tenure, gender and level of education with earnings quality and auditor choice. Sam...