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Full-Text Articles in Business
Earnings Management And Its Implications, Michael Akers, Don Giacomino, Jodi L. Gissel
Earnings Management And Its Implications, Michael Akers, Don Giacomino, Jodi L. Gissel
Accounting Faculty Research and Publications
In the wake of continuing, highly publicized financial frauds and failures, the accounting profession has placed renewed emphasis on issues related to earnings management and earnings quality. Staff Accounting Bulletin 101, Revenue Recognition in Financial Statements, which was issued in December 1999 in response to the Committee of Sponsoring Organizations of the Treadway Commission report, illustrates the importance of earnings to the SEC. The SEC and the public are demanding greater assurance about the quality of earnings. Notwithstanding the grave threat that abusive earnings-management practices pose to the reliability and accuracy of financial statements, the accounting profession may be reluctant …
Disclosure Frequency And Earnings Management, Hoje Jo, Yongtae Kim
Disclosure Frequency And Earnings Management, Hoje Jo, Yongtae Kim
Accounting
We examine the relation between disclosure frequency and earnings management,and the impact of this relation on post-issue performance, for a sample of seasoned equityofferings (SEOs). We contend that firms with extensive disclosure are less likely to faceinformation problems, leading to less earnings management and better post-issueperformance. Our results confirm that disclosure frequency is inversely related toearnings management and positively associated with post-issue performance. We alsofind that transparency-reducing disclosure is concentrated in firms that substantially, buttemporarily, increase disclosure prior to the offering. Such firms exhibit more earningsmanagement and poorer post-SEO stock performance, on average.JEL classification:G14; G24; G32; M41
Underwriter Choice And Earnings Management: Evidence From Seasoned Equity Offerings, Hoje Jo, Yongtae Kim, Myung Seok Park
Underwriter Choice And Earnings Management: Evidence From Seasoned Equity Offerings, Hoje Jo, Yongtae Kim, Myung Seok Park
Accounting
Using a sample of seasoned equity offerings (SEOs), this paper examines the association between the choice of financial intermediary and earnings management. We contend that with more stringent standards for certification and intense monitoring, highly prestigious underwriters restrict firms' incentives for earnings management to protect their reputation and to avoid potential litigation risks, while firms with greater incentives for earnings management avoid strict monitoring by choosing low-quality underwriters. Consistent with our predictions, we find an inverse association between underwriter quality and issuers' earnings management. In addition, we find that underwriter quality is positively related to SEOs' post-issue performance, even after …
Rate Regulation And Earnings Management: Evidence From The U.S. Electric Utility Industry, Joseph Ben Omonuk
Rate Regulation And Earnings Management: Evidence From The U.S. Electric Utility Industry, Joseph Ben Omonuk
LSU Doctoral Dissertations
Although accounting research continues to focus on earnings management, few studies have done so within the context of a single industry, and only one study to date (Paek 2001) has investigated this phenomenon within the context of U.S. rate-regulated electric utilities. Most utilities are viewed as natural monopolies, and therefore are subjected to rate regulation. These firms are permitted to earn a prescribed rate of return on an approved rate base. Although utilities are subjected to greater scrutiny than non-regulated public companies, regulatory restraint may create incentives to manage earnings (Healy and Whalen 1999), especially coincident with a utility’s request …