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 provide evidence that firms use discretion over financial...

We investigate the role of analyst following as a monitoring device reducing earnings management. We find strong evidence that analysts are more effective monitors in transparent environments than in opaque environments. In a sample of 51,401 observations for 10,866 non-financial firms in 26...

Accounts manipulations have been a matter of research, discussion and, even, controversy in several countries such as the United States, Canada, the United Kingdom, Australia and France. The objective of this paper is to elaborate a general framework for classifying accounts manipulations...

Although modest in terms of sales, compared to most other sectors, luxury does get a high share of investors', financial analysts’ and media attention. Why would this sector receive a share of attention much bigger than its actual weight? Is it because of its glamourous image, or the...