We examine earnings management practices of insider controlled firms across twenty-two countries to shed light on the link between consumption of private benefits and earnings management. Insider controlled firms are associated with more earnings management than non-insider controlled firms in...

We document the distortionary effects of accounting-based regulation on reported earnings. In India only firms with negative book value of equity (networth) can seek bankruptcy protection. Using a novel dataset of bankrupt firms from India, we show that firms manage earnings downward to seek...