Ho, Shirley J.; Sung, Hao-Chang - In: Annals of Economics and Finance 13 (2012) 2, pp. 355-380
We address the informational and strategic impacts of real earnings management (REM) in a two-period oligopoly model with one-sided information. For the strategic impacts of REM, once the demand falls short of expectation, a firm should raise the price instead of cutting it to reach the earnings...