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Keywords: discretionary accrualsClose
The Accounting Review (2019) 94 (3): 113–147.
Published: 01 May 2019
...Jennifer J. Gaver; Steven Utke ABSTRACT We argue that the association between auditor industry specialization and audit quality depends on how long the auditor has been a specialist. We measure audit quality using absolute discretionary accruals, income-increasing discretionary accruals, and book...
The Accounting Review (2018) 93 (5): 145–163.
Published: 01 September 2018
... audit difference. We contribute to the literature by demonstrating that when auditors observe REM, their altered perceptions about management can cascade, affecting how they respond to management estimates in unrelated financial statement accounts. audit discretionary accruals dispositional...
The Accounting Review (2018) 93 (3): 267–298.
Published: 01 May 2018
... discretionary accruals reported during negative watch are significantly higher than their respective pre- and post-watch levels, after controlling for accrual reversal. Consistent with its opportunistic nature, we find that accrual management increases with issuers' incentives to avoid downgrade, and decreases...
The Accounting Review (2017) 92 (2): 69–100.
Published: 01 March 2017
...Daniel W. Collins; Raunaq S. Pungaliya; Anand M. Vijh ABSTRACT Commonly used Jones-type discretionary accrual models applied in quarterly settings do not adequately control for nondiscretionary accruals that naturally occur due to firm growth. We show that the relation between quarterly accruals...
Includes: Supplementary data
The Accounting Review (2016) 91 (2): 559–586.
Published: 01 March 2016
... opaque channels to overstate earnings. Our findings are particularly relevant because managers exhibit a greater propensity for RAM at the time of SEOs, even though RAM is more costly in the long run. JEL Classifications: G14; G31; M4; M41 2016 earnings management discretionary accruals real...
The Accounting Review (2014) 89 (1): 243–273.
Published: 01 January 2014
... quality (financial restatements and discretionary accruals) and two measures of external auditor oversight (audit and nonaudit fees). As predicted, we find that audit committee members who are both accounting and industry experts perform better than those with only accounting expertise. We also find...
The Accounting Review (2013) 88 (6): 2117–2143.
Published: 01 November 2013
...James S. Linck; Jeffry Netter; Tao Shu ABSTRACT: Despite a large literature on discretionary accruals, how the use of discretionary accruals impacts corporate financial decisions is not well understood. We hypothesize that a financially constrained firm with valuable projects can use discretionary...
The Accounting Review (2012) 87 (1): 231–259.
Published: 01 January 2012
... in discretionary accruals receive significantly less weight than other income components in determining cash compensation. This provides new evidence that not all gains flow through to compensation. We also find that in non-terminal years, managers' compensation is partially shielded from the negative effects...
The Accounting Review (2011) 86 (4): 1189–1212.
Published: 01 July 2011
...William R Baber; Sok-Hyon Kang; Ying Li ABSTRACT This study presents conceptual and empirical analyses of discretionary accrual reversal in the earnings management context. We specifically focus on the extent that income-increasing (decreasing) discretionary accruals initiated in a prior period...