...: Data are available from the public sources cited in the text. JEL Classi cations: M41; M42; M48. Keywords: expanded auditor reporting; materiality disclosures; qualitative vs. quantitative materiality judgments; accruals earnings management; real earnings management. I. INTRODUCTION E xpanded audit...

...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] earnings smoothing dividend policy real earnings management accruals management earnings persistence We appreciate the helpful comments from Lawrence Brown, Hassan Espahbodi, Lixin Huang...

...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...