GONG, GUOJIN; LOUIS, HENOCK; SUN, AMY X. - In: Journal of Finance 63 (2008) 2, pp. 947-986
Both post-repurchase abnormal returns and "reported" improvement in operating performance are driven, at least in part, by pre-repurchase downward earnings management rather than genuine growth in profitability. The downward earnings management increases with both the percentage of the company...