Beneish, Messod Daniel; Capkun, Vedran; Fridson, Martin S. - 2013
While it is generally maintained that earnings management can occur to inform as well as to mislead, evidence that … earnings management informs has been scarce, and evidence that credibility increases with signal costliness inexistent. We … management informs rather than misleads investors. We find that firms that defy gravity (1) report higher future earnings and …