This paper finds that the initiation of trading in credit default swaps (CDS) improves earnings quality by reducing absolute abnormal earnings accruals through specific channels in CDS firms. CDS initiation brought about more private information discovery via financial analysts, cross-market...

This paper investigates the use of earnings management by cooperatives to avoid reporting losses or earnings decreases. Based on a unique dataset comprising quarterly financial statements reported by 66 Brazilian agricultural cooperatives between 2000 and 2015, our results show that cooperatives...

We investigate whether income smoothing affects the usefulness of earnings for contracting through the monitoring role of earnings-based debt covenants. First, we examine initial contract design and predict that income smoothing will increase (decrease) the use of earnings-based covenants if...

We investigate whether income smoothing affects the usefulness of earnings for contracting through the monitoring role of earnings-based debt covenants. First, we examine initial contract design and predict that income smoothing will increase (decrease) the use of earnings-based covenants if...

We examine how compensation of chief executive officer (CEO) and corporate governance practices affect earnings management behavior in an emerging economy, Pakistan. Using 1836 firm-year observations from 260 firms listed in KSE for period 2005 to 2012, we do not find that CEO compensation has...

The aim of this paper is to explain relationship between earning management, corporate governance and managerial optimism through the governance characteristics that are board of directors such as independence, duality and size and ownership structure such as managerial participation, block...

We examine whether analysts’ engagement in earnings conference calls curbs real activities earnings management. We find that analysts are more likely to ask questions on discretionary expenses at conference calls of firms that are suspects of lowering discretionary expenses to meet or narrowly...

The study examined the relationship between firm life cycle (FLC) and earnings management (EM) in the Vietnamese context with the moderating role of state ownership (SOE). We used the sample of 622 Vietnamese listed companies over the period 2010-2019. To eliminate autocorrelation and...

This study examines the impact of CEO inside debt on earnings management. Theory predicts that CEOs with higher inside debt holdings adopt less risky corporate policies and choose investment policies that result in less volatile earnings. Under such circumstances, CEOs would face weaker demand...

Using a hand-collected sample of Italian family and non-family-controlled firms, we investigate the moderating effect of family ownership on the relation between earnings management and CEO turnover. Consistent with agency theory, we find a positive and significant relation between earnings...