Cost and expense stickiness is an important issue in accounting and economics research, and the literature has shown that cost stickiness cannot be separated from managers’ motivations. In this paper, we examine the effects that earnings management has on expense stickiness. Defining small...

Raising public environmental awareness provides many benefits. However, using an exogenous shock—the unexpected release of the environmental documentary “Under the Dome” in China—we show that raising environmental awareness may have the unintended consequence of distorting firms’...