Purpose – The purpose of this paper is to examine whether Japanese private placement issuers manipulate their earnings around the time of issuance and the relationship between earnings management and the post-issue stock underperformance. Design/methodology/approach – Cross-sectional...

Fraudulent financial reporting is a matter of grave social and economic concern. The Treadway Commission recommended that the Auditing Standards Board require the use of analytical procedures to improve the detection of fraudulent financial reporting. This is an exploratory study to determine if...

Purpose – This study examines the effect of auditing and the integral approach to interim reporting on cosmetic earnings management, referred by Kinnunen and Koskela as earnings manipulative behavior to report earnings numbers to achieve key cognitive reference points represented by N ×10 k ....

Purpose – The purpose of this paper is to examine whether Japanese private placement issuers manipulate their earnings around the time of issuance and the relationship between earnings management and the post‐issue stock underperformance. Design/methodology/approach – Cross‐sectional...