Results 151 to 160 of about 141,734 (182)

The Association of Preaudit Engagement Risk with Discretionary Accruals

Journal of Accounting, Auditing & Finance, 2007
In an archival study of audits by multiple offices of three international audit firms, we examine whether preaudit engagement risk assessments made by the auditor are associated with estimated postaudit discretionary accruals. We find that preaudit engagement risk is significantly and positively associated with the estimated level of discretionary ...
Mock, T.J., Turner, J, Manry, D.
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Highly Valued Equity and Discretionary Accruals

Journal of Business Finance & Accounting, 2010
Abstract:  Overvalued equity provides a strong incentive for managers to report earnings that do not disappoint the market ( Jensen, 2005). We find that this can be extended to highly valued equity more generally. In the year following the classification as highly valued and compared to firms with less extreme valuations, highly valued firms have ...
Robert E. Houmes, Terrance R. Skantz
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Two essays on discretionary accruals

2014
This paper investigates whether managers manipulate accruals to help their firms emerge from Chapter 11 reorganization. Chapter 11 reorganization provides a very strong incentive: managers will lose their jobs or even their career if the firms are liquidated.
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Discretionary Accruals, Earnings Management, and Earnings Benchmarks

SSRN Electronic Journal, 2005
This study examines whether firms just above and just below three earnings benchmarks (loss avoidance, earnings changes, and analyst forecast) have differing levels of discretionary accruals. If discretionary accruals are a measure of earnings management, then firms above (benchmark beaters) and firms below a benchmark should have differing levels of ...
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Stock Options and Management'S Use of Discretionary Accruals

SSRN Electronic Journal, 2008
We examine the differences in the use of discretionary accruals between firms with in-the-money stock options and firms with out-of-money (i.e., underwater) stock options over a longer time horizon. We contend that management anticipating action from the board of directors may use less (more) positive (negative) discretionary accruals to decrease ...
Chuohsuan Lee, Pervaiz Alam
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Discretionary Accruals Quality, Cost of Capital, and Diversification

Journal of Accounting, Auditing & Finance, 2011
This study examines the discretionary accruals quality of single- and multiple-segment firms. The authors hypothesize and find that the discretionary accruals quality is lower for multiple-segment firms than single-segment firms, and for the same level of discretionary accruals quality, the cost of capital is higher for multiple-segment firms than ...
Urcan, O, Demirkan, S, Radhakrishnan, S
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The market pricing of accruals quality

, 2005
We investigate whether investors price accruals quality, our proxy for the information risk associated with earnings. Measuring accruals quality (AQ) as the standard deviation of residuals from regressions relating current accruals to cash flows, we find
J. Francis, Ryan Lafond, Per Olsson, K. Schipper   +3 more
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What motivates managers' choice of discretionary accruals?

Journal of Accounting and Economics, 1996
Abstract The papers by Subramanyam (1996) and Kasanen, Kinnunen, and Niskanen (KKN, 1996) both consider why managers manipulate accounting accruals. Subramanyam finds that discretionary accruals are associated with several performance measures, and concludes that managers' accrual choices increase the informativeness of accounting earnings.
Victor L. Bernard, Douglas J. Skinner
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Discretionary Accrual in the Knowledge-Based Economy

Journal of Applied Business and Economics
The modern economy transit from manufacturing to knowledge-based industries that are dependent on investments in R&D, advertising, and employee talents. These investments and much of the value that they generate cannot be capitalized as assets. As these intangible assets are off-balance-sheet, a firm’s book value might be low. When book value fails
Pei-Hui Hsu, Ching-Lih Jan, Kim Shima
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Estimating discretionary accruals using a grouping genetic algorithm

Expert Systems with Applications, 2013
A number of different models have been suggested for detecting earnings management but the linear regression-based model presented by Jones (1991) is the most frequently used. The underlying assumption with the Jones model is that earnings are managed through accounting accruals.
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