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作者：Cohen, Daniel A.; Dey, Aiyesha; Lys, Thomas Z.
作者单位：New York University; University of Chicago; Northwestern University
摘要：We document that accrual-based earnings management increased steadily from 1987 until the passage of the Sarbanes-Oxley Act (SOX) in 2002, followed by a significant decline after the passage of SOX. Conversely, the level of real earnings management activities declined prior to SOX and increased significantly after the passage of SOX, suggesting that firms switched from accrual-based to real earnings management methods after the passage of SOX. We also document that the accrual-based earnings m...
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作者：Hughes, John S.; Williams, Michael G.
作者单位：University of California System; University of California Los Angeles; University of Oregon
摘要：In this paper, we examine the welfare effects of pre-production commitments made by firms competing in oligopoly markets and disclosure of such commitments. By commitments we refer to any device that provides a strategic incentive to alter production choices. Examples include forward contracts, capital structure, research and development investment, terms of compensation, and cost allocation. If the only purpose underlying commitment is to gain a strategic advantage in product market competiti...
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作者：Brown, Philip
作者单位：University of New South Wales Sydney; University of Western Australia
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作者：Zhao, Yijiang; Chen, Kung H.
作者单位：University of Alaska System; University of Alaska Fairbanks; University of Nebraska System; University of Nebraska Lincoln
摘要：The literature suggests that staggered boards may have two opposite effects on earnings management: the expropriation view emphasizes the exacerbating effect, whereas the quiet life view advocates the mitigating effect. We use two approaches to examine this issue: a small-sample test based on whether firms are accused of committing financial reporting fraud, and a large-sample test based on the absolute value of unexpected accruals. We find that staggered boards are associated with lower likel...
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作者：Hodder, Leslie; Hopkins, Patrick E.; Wood, David A.
作者单位：Indiana University System; Indiana University Bloomington; Brigham Young University
摘要：We characterize the operating-activities section of the indirect-approach statement of cash flows as backward because it presents reconciling adjustments in a way that is opposite from the intuitively appealing, future-oriented, Conceptual Framework definitions of assets, liabilities, and the accruals process. We propose that the reversed-accruals orientation required in the currently mandated indirect-approach statement of cash flows is unnecessarily complex, causing information-processing pr...
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作者：Soliman, Mark T.
作者单位：University of Washington; University of Washington Seattle
摘要：DuPont analysis, a common form of financial statement analysis, decomposes return on net operating assets into two multiplicative components: profit margin and asset turnover. These two accounting ratios measure different constructs and, accordingly, have different properties. Prior research has found that a change in asset turnover is positively related to future changes in earnings. This paper comprehensively explores the DuPont components and contributes to the literature along three dimens...
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作者：Van Zijl, Tony
作者单位：Victoria University Wellington
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作者：Baik, Bok; Billings, Bruce K.; Morton, Richard M.
作者单位：Seoul National University (SNU); State University System of Florida; Florida State University
摘要：This paper examines whether industry efforts to decrease managerial discretion, increase uniformity, and improve transparency of a non-GAAP performance measure change voluntary disclosure and market perceptions. We find that the frequency of REITs meeting or beating analysts' expectations of funds from operations (FFO) decreases following explicit industry initiatives to discourage manipulation. Concurrent with this shift, we find that the information content of FFO to investors increased, par...
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作者：Barron, Orie E.; Byard, Donal; Yu, Yong
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; City University of New York (CUNY) System; Baruch College (CUNY); University of Texas System; University of Texas Austin
摘要：Large earnings surprises and negative earnings surprises represent more egregious errors in analysts' earnings forecasts. We find evidence consistent with our expectation that egregious forecast errors motivate analysts to work harder to develop or acquire relatively more private information in an effort to avoid future forecasting failures. Specifically, we find that after large or negative earnings surprises there is a greater reduction in the error in individual analysts' forecasts of futur...
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作者：Doyle, Jeffrey T.; Ge, Weili; Mcvay, Sarah
作者单位：Utah System of Higher Education; Utah State University; University of Washington; University of Washington Seattle; Utah System of Higher Education; University of Utah
摘要：We examine the relation between accruals quality and internal controls using 705 firms that disclosed at least one material weakness from August 2002 to November 2005 and find that weaknesses are generally associated with poorly estimated accruals that are not realized as cash flows. Further, we find that this relation between weak internal controls and lower accruals quality is driven by weakness disclosures that relate to overall company-level controls, which may be more difficult to audit a...
