Journal ArticleDOI
Earnings Management During Import Relief Investigations
TLDR
In this article, the authors test whether firms that would benefit from import relief attempt to decrease earnings through earnings management during import relief investigations by the United States International Trade Commission (ITC).Abstract:
This study tests whether firms that would benefit from import relief (eg, tariff increases and quota reductions) attempt to decrease earnings through earnings management during import relief investigations by the United States International Trade Commission (ITC) The import relief determination made by the ITC is based on several factors that are specified in the federal trade acts, including the profitability of the industry Explicit use of accounting numbers in import relief regulation provides incentives for managers to manage earnings in order to increase the likelihood of obtaining import relief and/or increase the amount of relief granted While studies of earnings management typically examine situations in which all contracting parties have incentives to "perfectly" monitor (adjust) accounting numbers for such manipulation, import relief investigations provide a specific motive for earnings management that is notread more
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Detecting Earnings Management
TL;DR: In this paper, the authors evaluate alternative models for detecting earnings management by comparing the specification and power of commonly used test statistics across the measures of discretionary accruals generated by each model.
Journal ArticleDOI
The economic implications of corporate financial reporting
TL;DR: This paper found that the majority of managers would avoid initiating a positive NPV project if it meant falling short of the current quarter's consensus earnings, and more than three-fourths of the surveyed executives would give up economic value in exchange for smooth earnings.
Journal ArticleDOI
Performance matched discretionary accrual measures
TL;DR: In this article, the authors examine the specification and power of tests based on performance-matched discretionary accruals, and make comparisons with tests using traditional discretionary accumrual measures (e.g., Jones and modified-Jones models).
Journal Article
Detecting earnings management
TL;DR: In this paper, the authors evaluate alternative accrual-based models for detecting earnings management and find that they appear well specified when applied to a random sample of firm-years.
Journal ArticleDOI
Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC*
TL;DR: In this article, the authors investigate the extent to which the earnings manipulations can be explained by earnings management hypotheses and the relation between earnings manipulation and weaknesses in firms' internal governance structures, and the capital market consequences experienced by firms when the alleged earnings manipulation are made public.
References
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Journal ArticleDOI
Elements of Econometrics.
Ian Domowitz,Jan Kmenta +1 more
TL;DR: The Elements of Econometrics as mentioned in this paper is a textbook for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in economics.
Book
The effects of bonus schemes on accounting decisions
TL;DR: The authors analyzed the format of typical bonus contracts, providing a more complete characterization of their accounting incentive effects than earlier studies, and found that accrual policies of managers are related to income-reporting incentives of their bonus contracts.
ReportDOI
Toward a More General Theory of Regulation
TL;DR: The authors showed that the costs of using the political process limit not only the size of the dominant group but also their gains, which is at one level, a detail which is the way Stigler treated it, but a detail with some important implications for entry into regulation and for the price-output structure that emerges from regulation.
Journal ArticleDOI
Corporate forecasts of earnings per share and stock-price behavior - empirical tests
TL;DR: In this paper, the authors examined the common stock price behavior which accompanied the voluntary disclosure of 336 forecasts of annual earnings per share during the years 1963-67 and found that these forecast disclosures were accompanied by significant price adjustments, from which the inference may be drawn that either the data presented in a management forecast, the act of voluntary disclosure, or both, convey information to investors.