What Have We Learned About Earnings Management? Integrating Discontinuity Evidence

• 成果类型: Article
• 署名作者: Burgstahler, David; Chuk, Elizabeth
• 署名单位: University of Washington; University of Washington Seattle; University of California System; University of California Irvine
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12301
• 发表日期: 2017
• 页码: 726-749
• 关键词: sample selection evidence; reported earnings; distributions; shapes; thresholds; histograms

摘要

The accounting literature includes numerous examples of discontinuities at prominent benchmarks that are widely interpreted as evidence that earnings are managed to meet those benchmarks. However, there are a few examples where discontinuities do not exist, which are sometimes interpreted as inconsistent with earnings management. Alternative explanations for discontinuities have also been suggested. This paper reviews, evaluates, and integrates the available evidence and concludes that the theory that earnings are managed to meet benchmarks provides the simplest and most complete explanation for the body of discontinuity-related evidence.