This research uses accrual and real earnings management strategies in an emerging economy to evaluate how CEO characteristics (i.e. CEO nationality, duality, and compensation) affect earnings management and how the COVID-19 pandemic modifies this connection. The empirical investigation used...

This paper examines earnings management dynamics in the airline industry around the industry deregulation of 1978. The 'corporate-governance-dynamics' hypothesis (Kole and Lehn, 1999) suggests that there exists a time lag of the internal corporate governance systems in adapting to new industry...

This study examines whether firms transfer income between the income statement and other comprehensive income (OCI) to manage earnings. The results are consistent with managers opportunistically reclassifying income as OCI and OCI as income. Specifically, we find that firms strategically...

Several previous studies have discussed the differential market reaction to Seasoned Equity Offerings (SEOs) which were issued at different frequencies and in different sequences. We explore an additional aspect to this issue. We have attempted to study the impact of the need for subsequent SEOs...

We investigate how local political corruption shapes corporate financial reporting conservatism. Using a large sample of U.S. public firms, we find that firms located in areas with higher levels of political corruption tend to adopt greater accounting conservatism. This finding is robust to...

We examine the effect of product market competition on firms' earnings management practices. Using exogenous variation in import competition, we find that heightened competition reduces both accrual-based and real earnings management. We also show that several measures of competition from past...

Objective - The purpose of this research is to analyze the effect of growth, leverage, fixed asset turnover, profitability, firm size, firm age, industry, audit quality, and auditor independence toward earnings management.Methodology/Technique - The population of this research consist of various...

The role of board secretaries is a unique institutional feature in China. Individuals in this senior executive role are responsible for coordinating information disclosure. We study the impact of board secretaries on management earnings forecasts and find that their legal expertise, accounting...

The wide-spread use of rank and file equity-based compensation suggests that executives believe that rank and file employees can affect firm outcomes, and some research supports this view. If equity-based incentives influence rank and file employees' productive efforts, they might also influence...

This paper studies the optimal design of long-term executive pay plans when boards of directors use accounting information for investment decision-making and executives can take costly actions to manipulate this information. The model predicts that a shift to more convex executive pay plans,...