This paper reconsiders various hypotheses tested in the literature concerning income smoothing, the big bath, financial distress, debt covenants, management turnover, ownership structure, and auditors. The results show that changes in accounting policy have been carried out for income smoothing....

This paper examines the differences in accrual-based and real earnings management across countries from the perspective of investor protection. Following prior research (Leuz et al., 2003), we hypothesize that accrual-based earnings management is more constrained by strict discipline in...

This paper investigates if the level of financial development influences accrual-based and real earnings management in an international setting. It is likely that financial development heightens the monitoring and scrutiny of accounting figures, because of strengthened laws and regulations for...

This paper examines whether consolidated earnings are managed to a greater extent than parent-only earnings or vice versa in an attempt to exceed the threshold in Japanese firms. The analysis reveals that earnings management to avoid earnings decreases is more pronounced in parent-only earnings...