The Real Effects of Real Earnings Management: Evidence from Innovation

• 成果类型: Article
• 署名作者: Bereskin, Frederick L.; Hsu, Po-Hsuan; Rotenberg, Wendy
• 署名单位: University of Delaware; University of Hong Kong; University of Toronto
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12376
• 发表日期: 2018
• 页码: 525-557
• 关键词: research-and-development; activities manipulation; development investment; operating performance; stock-market; small firms; revolution; valuation; decisions; patents

摘要

We examine the consequences of real earnings management from an innovation perspective and investigate the patent output of firms likely to be managing earnings through altering their R&D expenditures. We find that R&D cuts related to earnings management lead to fewer patents, less influential patent output, and lower innovative efficiency compared to other R&D cuts. Our results thus suggest that real earnings management may obstruct firms' technological progress and highlight the potential costs of managerial manipulation of R&D expenditures to alter reported earnings.