We study whether firms that voluntarily restrict insider trading have lower incentives for earnings management. Using a large sample of US firms, we measure these restrictions based on the extent to which insider transactions happen shortly after quarterly earnings announcements. We find that...

Employing Lennox's (2000) methodology on a uniquely long time series of Spanish companies' data, we find evidence of successful opinion-shopping through the firm switching decision. However, in contrast to Chen et al. (2016) in the Chinese setting, we find no evidence of successful...

We examine the effect of employee quality development on investment efficiency. Employees at all levels of an organization, as well as the corporate executives, may play a significant role for efficient corporate investment. Thus, human capital development efforts that improve employee quality...

Managers use management accounting and control systems (MACS) to monitor and detect deviations from earnings targets. We examine an unexplored side of MACS: its effects on earnings management. We predict and find evidence that managers interactively use MACS to focus the attention of the whole...

We argue that CEOs use narrative disclosure tone to assuage career concerns. In particular, we predict that more talented CEOs use a more optimistic tone at the beginning of their tenures to build a reputation of strong performance ability. We run our tests on a large sample of US firms' 10-K...

We study dividend payments and earnings management in railway companies in the first decades of the 20th century. We argue that the historical organization of the Spanish railway industry as a complex net of 99-year concessionary contracts created predictable incentives for earnings management...

Recent research in accounting suggests female directors exert more stringent monitoring over the financial reporting process than their male counterparts. However, an emerging literature in finance and economics provides mixed findings and questions whether females in leadership roles...

We study if debt pressures drive the use of interactive management accounting and control systems (MACS) and its consequences. We build on Simons (1990) and argue that financing pressures can threaten strategic investment. To alleviate debt pressures and reduce information asymmetries with...