共查询到20条相似文献,搜索用时 22 毫秒
1.
Bikki Jaggi Chen-lung Chin Hsiou-wei William Lin Picheng Lee 《Review of Quantitative Finance and Accounting》2006,26(3):275-299
This study examines whether the Taiwanese regulation requiring disclosure of earnings forecasts in the IPOs resulted in disclosure
of more optimistic earnings forecasts and whether the forecast error was reduced more by manipulating the reported earnings
rather than revising the earnings forecasts to meet the forecast error threshold. The study is based on 759 forecasts issued
by the Taiwanese IPO firms from 1994 to 2001, i.e. 8-year period after the regulation was modified to increase the forecast
error threshold to 20%.
The findings show that the disclosure regulation resulted in more optimistic forecasts than conservative forecasts, especially
for firms expecting better performance in the forecast year compared to the previous year. Firms disclosing optimistic earnings
forecasts engaged more in manipulation of reported earnings than revision of forecasts to meet the forecast error threshold.
These findings thus suggest that the disclosure regulation resulted in earnings manipulation, which reduced the quality of
reported earnings.
We received valuable comments at the 2003 American Accounting Association and 2004 Euorpean Accounting Association annual
meetings. We also thank the participants at the research seminars at Rutgers University, City University of Hong Kong, and
Pace University, for their insightful comments. Picheng Lee especially thanks Pace University for 2003 summer research grant. 相似文献
2.
In this paper, managers differ from each other in terms of the probability that they are ??forthcoming?? (and disclose all the earnings forecasts they receive) or ??strategic?? (and disclose the earnings forecasts they receive only when it is in their self-interest to do so). Strategic managers choose whether to disclose their forecasts based on both the disclosure??s effects on their firms?? stock price and on their reputation among investors for being forthcoming. Our findings include: strategic managers can build a reputation for being forthcoming by disclosing unfavorable forecasts; managers?? incentive to build a reputation for being forthcoming may be so strong that they disclose even the most negative forecasts; as managers become more concerned about their reputation: (a) the current price of the firm in the event the manager makes no forecast increases; (b) managers who have a high probability of behaving strategically (as forthcoming) in the future issue forecasts more (less) often in the present. 相似文献
3.
This paper examines the directional effects of management earnings forecasts on the cost of equity capital. We find that forecasters of bad news experience a significant increase in the cost of equity capital in the month after their disclosure. Conversely, the cost of equity capital for good news forecasters does not change significantly in the same period. We also indicate that the magnitude of changes in the cost of capital for good news forecasters is significantly lower than that for bad news forecasters and non-forecasters, which suggests that investors may view good news forecasts less credible. Finally, we show that the effect of the subsequent earnings announcement on the cost of equity capital is preempted by the management forecasts for bad news firms, and that the combined effects of the management earnings forecasts and the earnings announcement are not significant for both good news and bad news forecasters. Our paper contributes to the literature by adding evidence on directional effects of voluntary disclosures and on long-term economic consequences of management earnings forecasts. 相似文献
4.
This study investigates the relation between discretionary accounting choices and executive compensation in Japanese firms. The results show that the use of discretionary accruals increases executive compensation. The analyses also show that firm managers receiving no bonus adopt income-decreasing accruals and extraordinary items. In particular, evidence shows that negative extraordinary items are strongly associated with no bonus payment. Finally, the research indicates that the association between discretionary accruals and executive bonus varies depending upon the circumstances of the firm. This study contributes to the literature on earnings management from an international comparative perspective since most previous studies on earnings management and executive compensation have focused on U.S. firms. 相似文献
5.
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 controlling
for the effect of earnings management. We also find that firms with low-underwriter prestige and high levels of earnings management
under-perform the most. However, the effect of underwriter choice on post-issue performance does not last long.
相似文献
Myung Seok ParkEmail: |
6.
Firm diversification and earnings management: evidence from seasoned equity offerings 总被引:1,自引:3,他引:1
Chee Yeow Lim Tiong Yang Thong David K. Ding 《Review of Quantitative Finance and Accounting》2008,30(1):69-92
Popular press suggests that diversified firms are more aggressive in managing earnings than non-diversified firms. We examine
this claim in the seasoned equity offering (SEO) setting, where firms have been shown to have the incentive to manage earnings
upwards. Using the cross-sectional modified Jones [(1991) J Accounting Res 29:193–228] model to measure discretionary current accruals, we find that discretionary current accruals
are higher among diversified firms than in non-diversified ones. Our evidence is consistent with the view that the extent
of firm diversification is directly related to the degree of earnings management. We further show that diversified issuers
with high discretionary accruals underperformed other SEO firms.
相似文献
David K. DingEmail: |
7.
Stephen Baginski Elizabeth Demers Chong Wang Julia Yu 《Review of Accounting Studies》2016,21(1):165-197
Research documents that linguistic tone is incrementally informative about stock returns. What remains a puzzle is the mechanism by which investors can assess its credibility. We examine whether contemporaneous information in management earnings forecasts serves as a timely alternative to ex post verification. We document that ex post verifiable quantitative news in unbundled forecasts, and characteristics of the linguistic tone itself, affect investors’ pricing of tone. Consistent with higher quality signals enhancing the credibility of contemporaneous lower quality signals, we find that quantitative news verifies the associated linguistic tone; when the two signals have the same sign, the price effect of tone is stronger. Furthermore, the pricing attenuation of tone is increasing in the imprecision of the quantitative forecast, suggesting that lower forecast quality compromises the quantitative signal’s credibility enhancement. Managerial incentives to inflate tone lead to the verification effect being greater for optimistic language, while management’s use of hyperbole results in attenuation of the tone’s pricing. 相似文献
8.
Review of Accounting Studies - I develop approaches that quantify the use of discretion for the three main assumptions used for the financial reporting of defined benefit pension obligations: the... 相似文献
9.
Hong Yongtao Huseynov Fariz Sardarli Sabuhi Zhang Wei 《Review of Quantitative Finance and Accounting》2020,54(1):29-49
Review of Quantitative Finance and Accounting - We investigate whether there are information transfers related to the narratives accompanying earnings announcements in the same way there are for... 相似文献
10.
Nader M. Hafzalla 《Review of Accounting Studies》2009,14(4):507-533
Managers in management leveraged buyout (MBO) firms prefer to purchase their firms at a low offer price. This motive gives them a clear incentive to make pessimistic discretionary disclosures. Using a sample of press releases, I find that managers involved in their firms’ MBO selectively release negative disclosures to denigrate their firm just before the MBO transaction when compared with prior period: they issue more bad news disclosures and more pessimistic quotes. Additionally, they issue less optimistic quotes, fewer good news disclosures, less positive earnings forecasts, and they manage earnings downwards. I control for factors that may not be caused by managers’ purchase motives by comparing the MBO sample with a third-party leveraged buyout sample where management is not involved in the buyout and with a performance-matched control sample. I find that the disclosure of MBO firms becomes significantly more pessimistic than the leveraged buyout firms where management is not involved in the transaction and significantly more pessimistic than the performance-matched control sample. 相似文献
11.
The likelihood and speed of forced CEO turnover – but not voluntary turnover – are positively related to a firm's earnings management. These patterns persist in tests that consider the effects of earnings restatements, regulatory enforcement actions, and the possible endogeneity of CEO turnover and earnings management. The relation between earnings management and forced turnover occurs both in firms with good and bad performance, and when the accruals work to inflate or deflate reported earnings. These results indicate that boards tend to act proactively to discipline managers who manage earnings aggressively, before the manipulations lead to costly external consequences. 相似文献
12.
Distinct from the literature on the effects that management earnings forecasts(MEFs) properties, such as point, range and qualitative estimations, have on analy... 相似文献
13.
Lakshmanan Shivakumar Oktay Urcan Florin P. Vasvari Li Zhang 《Review of Accounting Studies》2011,16(3):464-486
We investigate the credit market’s response via changes in credit default swap (CDS) spreads to management earnings forecasts
and evaluate the importance of these forecasts relative to earnings news during the periods before and during the recent credit
crisis. We document that credit markets react significantly to management forecast news and that the reactions to forecast
news are stronger than to actual earnings news. Consistent with the asymmetric payoffs to debt holders, the forecast news
is mainly relevant for firms with poor credit rating or announcing bad news. We also show that the relevance of management
forecasts to credit markets is particularly strong during periods of high uncertainty, as experienced during the recent credit
crisis. 相似文献
14.
Ying Wang Michael Campbell 《Advances in accounting, incorporating advances in international accounting》2012
This research used 1,329 Chinese publicly listed companies’ data from 1998 to 2009 to investigate how IFRS, state ownership, and board of directors (BOD) influence earnings management. We conclude that state-ownership to an extent discourages earnings management in the current environment of China. However, IFRS implementation does not seem to deter earnings management. When state-ownership is not the case, increasing the number of independent BOD seems to be a good practice to discourage earnings management, although non-independent BOD does not make any difference. 相似文献
15.
In this study, we examine whether government regulatory initiatives in China involving IPO by SOEs may have contributed to opportunistic behaviors by the issuer. We focus on two sets of IPO regulations issued between January 1, 1996 and February 11, 1999: pricing regulations, which stipulate that IPO prices be a function of accounting performance, and penalty regulations, which penalize IPO firms for overly optimistic forecasts. We find that IPO firms that report better pricing-period accounting performance have larger declines in post-IPO profitability, lower first-day stock returns and worse long-run post-IPO stock performance. Furthermore, IPO firms that make overoptimistic forecasts also have lower first-day returns and worse post-IPO stock performance. Using non-core earnings as the proxy for earnings management, we document some evidence that IPO firms that report higher pricing-period accounting performance have engaged in more income-increasing earnings management. Hence, pricing regulations may have induced IPO firms to inflate pricing-period earnings and affect the post-IPO performance negatively. On the other hand, penalty regulations have deterred IPO firms from making overoptimistic earnings forecast and therefore have a positive impact on the behavior of IPO firms. 相似文献
16.
Grieser William Hadlock Charles J. Pierce Joshua R. 《Review of Accounting Studies》2021,26(3):906-932
Review of Accounting Studies - We provide evidence on earnings management by exploiting temporary exogenous shocks to utility firms’ sales arising from weather variation. We find that sample... 相似文献
17.
Rong Ding Mingzhi Liu Tingting Wang Zhenyu Wu 《Journal of Accounting and Public Policy》2021,40(2):106818
This study explores the influence of climate risk on properties of firms’ financial reporting practices with observations collected from 64 countries between 2005 and 2016. We use a country-level climate risk indicator developed by Germanwatch to measure the degree of damage from extreme weather events, and find that climate risk positively influences firms’ engagements in both accruals-based and real earnings management. Furthermore, we document that the above-mentioned effects of climate risk are moderated by the quality of country-level public governance. Subsample analysis suggests that the main effect of climate risk on earnings management is more pronounced for firms from developed countries, for firms in environment-sensitive industries, and for firms reporting losses. Our findings, which are supported by a battery of robustness tests, have important implication for regulators and policymakers. 相似文献
18.
We investigate the relation between segment disclosure and earnings quality. Using a US sample for the period 2001–2006, we find a positive relation between earnings quality and the quantity of segment disclosures. We use lead-lag tests to examine the flow of causality, and our results show that current segment disclosure is positively related to prior levels of earnings quality, while current earnings quality scores are not related to prior levels of segment disclosure. Thus, the causality flows from earnings quality to segment disclosure. Our results hold for both business and geographic segment disclosure. 相似文献
19.
Haiyan Jiang Ahsan Habib 《Advances in accounting, incorporating advances in international accounting》2012
This paper investigates the impact of split-share structure reform on earnings management in China. A unique institutional feature of China was the co-existence of two types of share that endowed all shareholders with equal voting and cash flow rights but different tradability. This split-share structure significantly constrained the tradability of shares that led the Chinese Securities Regulatory Commission to make it mandatory for the conversion of non-tradable shares into tradable shares from 2006 onwards. We investigate whether such a conversion has any effect on information quality through reduced earnings manipulation. We specifically examine the incentives for earnings management during the reform-transition period. A unique feature of the split-share reform has been the requirement for non-tradable share holders to compensate the tradable share holders. We argue that the rational response from the non-tradable share holders would be to pay a lower consideration to tradable share holders by portraying a favorable picture through income-increasing earnings management. We also test for the effect of an increase in tradable shares on earnings management during the reform-transition and post-reform period. 相似文献
20.
Emeka T. Nwaeze 《Advances in accounting, incorporating advances in international accounting》2011,27(1):26-38
In this study, I examine the effect of exposure to earnings management (EM) incentives on the earnings response coefficient (ERC). Drawing from several anecdotes and normative arguments about the implications of managers' incentives for investor perception, I predict and test that exposure to EM incentives is negatively associated with the ERC. I find that ERC is reliably lower for firms with elevated exposure to EM incentives, holding constant the effects of actual EM and other factors that affect the returns–earnings relation. Furthermore, the effect of the incentive exposure on cash flows as well as on total accruals is reliably negative. These results are robust across alternative price– and returns–earnings specifications, and are insensitive to the inclusion of other measures of earnings quality. Additional analysis shows that the effect of such incentives on the ERC is more pronounced at higher levels of institutional stock ownership. However, a certain class of institutional owners – transient institutions – are less sensitive to the implications of such incentives for earnings quality. 相似文献