...KoEun Park ABSTRACT A growing literature provides evidence that peer considerations play a central role in shaping a firm’s behavior. This paper documents that the frequency of forced CEO turnovers by product market peer firms is negatively associated with a firm’s real earnings management. I find...

... opportunism real earnings management accruals-based earnings management It is common for managers to engage in opportunistic behavior, such as accruals-based earnings management (AEM) and/or real earnings management (REM or operational opportunism), in an effort to boost reported earnings and meet...

...Sterling Huang; Sugata Roychowdhury; Ewa Sletten ABSTRACT In this paper, we rely on an exogenous shock to examine the impact of litigation risk on real earnings management (REM). We conduct difference-in-differences tests centered on an unanticipated court ruling that reduced litigation...

... 2015 September 2018 2019 operational distortion surrogation narrative reporting preference for consistency cheap talk real earnings management Managers are all too familiar with Campbell's Law: reporting systems that measure and incentivize performance typically also...

...Benjamin P. Commerford; Richard C. Hatfield; Richard W. Houston ABSTRACT Recent research reveals that accruals-based earnings management (AEM) is decreasing while real earnings management (REM) is increasing, suggesting the correlation is due to regulatory scrutiny. However, based on Correspondent...

...Patrick Vorst ABSTRACT I examine whether a reversal of an abnormal cut in discretionary investments is associated with the degree to which the cut is reflective of real earnings management (REM) and whether and how it predicts future operating performance. I define a reversal as occurring when...

...Qiang Cheng; Jimmy Lee; Terry Shevlin ABSTRACT We examine whether internal governance affects the extent of real earnings management in U.S. corporations. Internal governance refers to the process through which key subordinate executives provide checks and balances in the organization and affect...