This study empirically examines the effectiveness of Cressey's (1953) fraud risk factor framework adopted in SAS No. 99 in detection of financial statement fraud. According to Cressey's theory pressure, opportunity and rationalization are always present in fraud situations. We develop variables...

In response to concerns over the viability of the academic discipline of accounting we investigate trends in accounting research by examining papers published in six top accounting journals from 1960 to 2007. We use citations made by accounting papers as a proxy for their antecedent ideas and...

Most earnings restatements are blamed on error, or misunderstanding of GAAP, but suspicion persists that many of these restatements are instead due to intentional earnings management. We analyze balance sheet bloat, or unusually high levels of working capital account balances, for evidence of...

This paper examines the relation between earnings management and the marginal cost of debt to the firm using a sample of traded corporate bonds for the period 1994-2005. The marginal cost of debt is captured by market determined yield spreads, while earnings management is proxied by three...

The purpose of our research is to determine the likelihood of financial statement manipulations in companies throughout a variety of emerging market countries and compare this potential to that of firms within the United States. We do this by utilizing the Fraud Score Model as set forth by...

Purpose – The purpose of this paper is to examine the factors affecting the relationships between CEO stock option compensation and earnings management. Design/methodology/approach – Regression of CEO stock option compensation and other factors on measures of discretionary accruals. Findings...

In a longitudinal study of top US executives between 1996 and 2006, we examined the impact of underwater stock options on voluntary turnover. We took a multi-disciplinary perspective, which recognizes the financial and economic logic suggesting that while underwater options may carry a positive...