...Rui Wang; Hong Zou SYNOPSIS This study investigates how directors’ service horizon affects real earnings management (REM). By exploiting mergers and acquisitions that terminate directors’ outside appointments on the acquired firms’ boards, we show that independent directors who lose outside board...

... reporting materiality disclosures qualitative vs. quantitative materiality judgments accruals earnings management real earnings management Expanded audit report regulation in the United Kingdom requires auditors to disclose client-specific quantitative materiality thresholds (QMTs). U.S...

...Brooke D. Beyer; Sandeep M. Nabar; Eric T. Rapley SYNOPSIS Prior studies document both an improvement ( Gunny 2010 ) and deterioration ( Bhojraj, Hribar, Picconi, and McInnis 2009 ) in the future operating performance of firms engaging in real earnings management (REM) to meet earnings benchmarks...

...Tuukka Järvinen; Emma-Riikka Myllymäki SYNOPSIS The purpose of this study is to investigate whether SOX Section 404 material weaknesses manifest in real earnings management behavior. The empirical findings indicate that, compared to companies with effective internal controls, companies...

... behavior. JEL Classifications: M41; G35 Corresponding author: Nan Liu Email: [email protected] 2014 earnings smoothing dividend policy real earnings management accruals management earnings persistence We appreciate the helpful comments from Lawrence Brown, Hassan Espahbodi...

...Wuchun Chi; Ling Lei Lisic; Mikhail Pevzner SYNOPSIS We examine whether firms resort to real earnings management when their ability to manage accruals is constrained by higher quality auditors. In settings involving strong upward earnings management incentives, i.e., for firms that meet or just...