This study examines how the interplay between financial and non-financial measures affects management forecasting behavior. Building on the knowledge that NFMs are typically aligned with actual earnings and are likely incorporated into earnings forecasts, we investigate if the level of...

This study examines how the interplay between financial and nonfinancial measures (NFMs) affects management forecasting behavior. Building on the knowledge that NFMs are typically aligned with actual earnings and are likely incorporated into earnings forecasts, we investigate if the level of...

This case provides an opportunity for you to make accounting allocation choices, justify those choices, and subsequently consider the ramifications of those choices. Two different scenarios – one in the academic setting and one in the business setting – examine the incentives and reporting...

Presumably, shareholder rights aim to better align the actions of managers with the interests of shareholders; however, it is not clear from prior research whether such alignment mitigates or exacerbates managers' propensity to manage earnings. We document that when shareholder rights are...

We examine the role manager entrenchment has on firms' financial reporting quality. More specifically, we test whether entrenched managers' reported accruals deviate from industry norms and whether entrenched managers' abnormal accruals are more (or less) predictive of future cash flows....

Existing evidence indicates a propensity by managers to report GAAP net income to external parties that meets or beats performance thresholds. An unanswered question is whether managers also beat thresholds with internal performance measures. Due to the implementation of SFAS No. 131,...