Download or read book Earnings Management of Firms Subjected to Price Regulation written by Stephen Lim and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study operationalises a theoretical model of political costs specific to the establishment of the Prices Justification Tribunal in Australia and its implications for firms targeted in this political action. The aim is to identify and define a rigorous linkage between political actions likely to transfer wealth away from targeted firms, and firms' earnings manipulation. Both cross-sectional and longitudinal approaches are employed to examine the incentives for managers of target firms to manipulate earnings in a way which would be conducive to alleviating their exposure to wealth transfer. The cross-sectional approach examines the hypothesis that firms exposed to high levels of political costs would more likely manage their earnings downwards, as compared to other firms within the same period. The longitudinal approach examines the hypothesis that firms would more likely effect earnings-reducing accruals in periods of intense political costs, as compared to other periods of lesser political exposure. The empirical evidence presented suggests that firms are more likely to effect negative accounting accruals during periods when they are subjected to intense political scrutiny as a means of reducing their exposure to political costs.
Download or read book Institutional and Structural Constraints to Detecting Earnings Management of Firms Subjected to Price Regulation written by Stephen Lim and published by . This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the political costs of firms upon the establishment of the Prices Surveillance Authority in Australia in 1984. The paper identifies and defines a linkage between political actions likely to transfer wealth away from targeted firms and firms' subsequent earnings management.The cross-sectional and longitudinal evidence presented in this study does not support the hypothesis that firms are more likely to affect negative accounting accruals during periods when they are subjected to intense political scrutiny as a means of reducing their exposure to political costs.A further examination of the institutional environment and structural arrangements for price surveillance suggests that while establishing a linkage between political costs and earnings management by firms is a necessary condition, it is not by itself a sufficient condition. Earnings management is but one of several options which can be used to deflect political costs by firm managers.
Download or read book Institutional and Structural Constraints to Detecting Earnings Management of Firms Subjected to Price Regulation written by S. Lim and published by . This book was released on 1996 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Earnings Management of Firms in Response to Price Regulation written by S. Lim and published by . This book was released on 1996 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Regulation of Prices and Earnings Management written by Farshid Navissi and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Using two samples of New Zealand listed firms this study examines discretionary accruals in relation to two sets of price control regulations. These regulations allowed regulated firms to apply for price increases in 1971 and 1972. A modified version of Jones (1991) model and the Industry model are used. Discretionary accruals are tested longitudinally and cross-sectionally. The cross-sectional tests can mitigate the problem of model misspecification and measurement error since firms in samples have different event years. The results indicate that firms used income decreasing discretionary accruals in the years they could apply for price increases.
Download or read book Earnings Management written by Joshua Ronen and published by Springer Science & Business Media. This book was released on 2008-08-06 with total page 587 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?
Download or read book The Impact of Regulations on Earnings Management Via Related Party Sales in China written by Juncheng Hu and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact of regulations on earnings management via related party sales (RPSs) in China. RPSs have been regarded as a primary means of earnings management in China. Manipulated RPS might involve sales of product or services between related parties at distorted prices or inflated sales volumes. However, manipulating transaction prices is less costly than inflating volumes as price manipulation does not require unnecessary production and transfer costs. The abuse of RPSs was associated with a series of corporate failures and a huge decline in investor confidence at the late 1990s. These scandals were highly publicised and regulators subsequently implemented an accounting treatment regulation in 2001, aimed at reducing earnings inflation via RPSs. Despite significant regulatory changes, the scope of events that led to the passage of the 2001 RPT measurement regulation, and the consequences of the regulatory changes have yet to be studied. This thesis addresses two sets of research questions in this study. The first research question examines whether there is a change in the prevalence of price inflation in RPSs before and after the 2001 RPT measurement regulation. The second research question examines motivations for using RPSs to inflate earnings, and the effect of regulatory change on the extent of earnings management for firms with incentives to inflate earnings. To carry out the investigation, this thesis estimates earnings management using RPSs in two ways. The change measure is defined as the difference between RPSs in the current year and previous year. The change in RPSs is decomposed into the positive change in RPSs denoting income-increasing RPSs and the negative change in RPSs denoting income-decreasing RPSs. The level measure is defined as the difference between a firm's RPS and the mean RPS for all other firms in the same industry. I argue that, if there was a widespread use of transfer pricing techniques in RPSs to inflate earnings, there should be a positive association between the change in gross margin and income-increasing RPSs. The results provide evidence that income-increasing RPSs are associated with price inflation in the pre-RPT regulation period but refer mainly to volumes inflation in the post-RPT regulation period. To my best knowledge, this is the first study to examine the nature of income-increasing RPSs by considering the prevalence of price versus volumes inflation in RPSs. Moreover, this study documents that both before and after the 2001 RPT measurement regulation, the level of RPS manipulation is abnormally higher for firms with incentives to use RPSs to meet the regulatory thresholds of new equity offerings or avoid special treatment policies when compared to firms in various control samples. However, suspected earnings management firms use significantly less RPSs after the regulatory change when compared to firms in similar circumstances prior to the regulatory change. The results provide evidence that the regulation in 2001 reduced but did not eliminate earnings inflation.
Download or read book Evidence on the Tradeoff Between Real Manipulation and Accrual Manipulation to 25 Pages 26 to 50 Pages 51 to 75 Pages 76 to 100 Pages 101 to 120 written by Amy Yunzhi Zang and published by ProQuest. This book was released on 2000 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Introduction to Earnings Management written by Malek El Diri and published by Springer. This book was released on 2017-08-20 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides researchers and scholars with a comprehensive and up-to-date analysis of earnings management theory and literature. While it raises new questions for future research, the book can be also helpful to other parties who rely on financial reporting in making decisions like regulators, policy makers, shareholders, investors, and gatekeepers e.g., auditors and analysts. The book summarizes the existing literature and provides insight into new areas of research such as the differences between earnings management, fraud, earnings quality, impression management, and expectation management; the trade-off between earnings management activities; the special measures of earnings management; and the classification of earnings management motives based on a comprehensive theoretical framework.
Download or read book Defense Procurement Fraud written by United States. Department of Justice. Office of Legal Education and published by . This book was released on 1990 with total page 932 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Model Rules of Professional Conduct written by American Bar Association. House of Delegates and published by American Bar Association. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
Download or read book Earnings Management Fintech Driven Incentives and Sustainable Growth written by Michael I. C. Nwogugu and published by Routledge. This book was released on 2019-11-01 with total page 275 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditional research about Financial Stability and Sustainable Growth typically omits Earnings Management (as a broad class of misconduct), Complex Systems Theory, Mechanism Design Theory, Public Health, psychology issues, and the externalities and psychological effects of Fintech. Inequality, Environmental Pollution, Earnings Management opportunities, the varieties of complex Financial Instruments, Fintech, Regulatory Fragmentation, Regulatory Capture and real-financial sector-linkages are growing around the world, and these factors can have symbiotic relationships. Within Complex System theory framework, this book analyzes these foregoing issues, and introduces new behaviour theories, Enforcement Dichotomies, and critiques of models, regulations and theories in several dimensions. The issues analyzed can affect markets, and evolutions of systems, decision-making, "nternal Markets and risk-perception within government regulators, operating companies and investment entities, and thus they have Public Policy implications. The legal analysis uses applicable US case-law and statutes (which have been copied by many countries, and are similar to those of many common-law countries). Using Qualitative Reasoning, Capital Dynamics Theory (a new approach introduced in this book), Critical Theory and elements of Mechanism Design Theory, the book aims to enhance cross-disciplinary analysis of the above-mentioned issues; and to help researchers build better systems/Artificial-Intelligence/mathematical models in Financial Stability, Portfolio Management, Policy-Analysis, Asset Pricing, Contract Theory, Enforcement Theory and Fraud Detection. The primary audience for this book consists of university Professors, PHD students and PHD degree-holders (in industries, government agencies, financial services companies and research institutes). The book can be used as a primary or supplementary textbook for graduate courses in Regulation; Capital Markets; Law & Economics, International Political Economy and or Mechanism Design (Applied Math, Operations Research, Computer Science or Finance).
Download or read book Financial Crises and Earnings Management Behavior written by Bruno Maria Franceschetti and published by Springer. This book was released on 2017-08-03 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book approaches the question of the relation between financial crises and earnings management from two philosophical perspectives: positivism and critical realism. The results obtained using the positivist approach indicate that financial crises tend to have no consistent effect on earnings quality since managers’ earnings behavior does not differ from the pre-crisis to the crisis period. The author accordingly argues against the existence of a causal law based on a constant conjunction model (i.e., whenever a financial crisis happens, earnings management occurs) and concludes that financial crises cannot be seen as the cause of earnings management. The critical realism perspective, on the other hand, casts light on managers’ reasons for acting like an earnings manager; in conjunction with the more traditional positivist approach, it assists in refuting the idea of financial crises as a generative mechanism for earnings management. The author concludes by exploring other structures at work that might be responsible for earnings management. This book will be of interest to both academics and a wide range of professionals.
Download or read book Management Control Systems written by Kenneth A. Merchant and published by Pearson Education. This book was released on 2007 with total page 876 pages. Available in PDF, EPUB and Kindle. Book excerpt: With its unique range of case studies, real life examples and comprehensive coverage of the latest management control-related tools and techniques, Management Control Systems is the ideal guide to this complex and multidimensional subject for upper level undergraduates, postgraduates and practising professionals.
Download or read book Estimating the Costs of Financial Regulation written by Mr.Andre Santos and published by International Monetary Fund. This book was released on 2012-09-11 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.
Download or read book Concentrated Corporate Ownership written by Randall K. Morck and published by University of Chicago Press. This book was released on 2007-12-01 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: Standard economic models assume that many small investors own firms. This is so in most large U.S. firms, but wealthy individuals or families generally hold controlling blocks in smaller U.S. firms and in all firms in most other countries. Given this, the lack of theoretical and empirical work on tightly held firms is surprising. What corporate governance problems arise in tightly held firms? How do these differ from corporate governance problems in widely held firms? How do control blocks arise and how are they maintained? How does concentrated ownership affect economic growth? How should we regulate tightly held firms? Drawing together leading scholars from law, economics, and finance, this volume examines the economic and legal issues of concentrated ownership and their impact on a shifting global economy.
Download or read book Comparative Research on Earnings Management Corporate Governance and Economic Value written by Vieira, Elisabete S. and published by IGI Global. This book was released on 2021-02-12 with total page 433 pages. Available in PDF, EPUB and Kindle. Book excerpt: New trends are emerging regarding earnings management and corporate governance showing similarities and striking differences in the practices of different countries and economies. These new trends currently shape the field of modern corporate governance with crucial issues being looked at in governance law and practices, accounting systems, earnings quality and management, stakeholder involvement, and more. In order to advance these new avenues in corporate governance, research looks at accounting policies firms use in different opportunistic circumstances in order to manage earnings, the corporate governance practices in different countries, firm performance, and other dimensions of companies. The understanding of these topics is beneficial in understanding the current state of different types of firms and their practices in modern times. Comparative Research on Earnings Management, Corporate Governance, and Economic Value is focused on the investigation of key challenges and perspectives of corporate governance and earnings management and outlines possible scenarios of its development. The chapters explore this new avenue of research and cover theoretical, empirical, and experimental studies related to different themes in the global context of earnings management and corporate governance. This book is ideal for economists, businesses, managers, accountants, practitioners, stakeholders, researchers, academicians, and students who are interested in the current issues and advancements in corporate governance and earnings management.
