Discussion of Why are earnings kinky? An examination of the earnings management explanation

• 成果类型: Editorial Material
• 署名作者: McNichols, MF
• 署名单位: Stanford University
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1023/A:1024486000789
• 发表日期: 2003
• 页码: 385-391
• 关键词: accruals; losses

摘要

The Dechow et al. paper (2003, this issue) on the distribution of earnings raises an important question: why are earnings kinky? They conduct a number of tests of the earnings management explanation and do not find supportive evidence. They also provide evidence that a number of factors influence the magnitude of the discontinuity in earnings, suggesting that it is a poor proxy for the extent of earnings management. This discussion addresses the contribution of their study, the power of their tests and the implications for future research. Is there any point to which you would wish to draw my attention? To the curious incident of the dog in the night-time. The dog did nothing in the night-time. That was the curious incident, remarked Sherlock Holmes.