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Keywords: real earnings management
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Journal Articles
Journal of Management Accounting Research (2024) 36 (3): 51–65.
Published: 01 November 2024
... dropping the project always leads to higher payoffs for managers, keeping the project leads to higher payoffs to the owners for projects with good future outcomes. Dropping a project with good future prospects is akin to real earnings management (REM), such as cutting R&D to meet bonus targets. We find...
