2008 pp. 757–787 Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes-Oxley Periods Daniel A. Cohen New York University Aiyesha Dey University of Chicago Thomas Z. Lys Northwestern University ABSTRACT: We document that accrual-based earnings management increased steadily from 1987 until the passage of the Sarbanes-Oxley Act (SOX) in 2002‚ followed by a significant decline after the passage of SOX. Conversely‚ the level of real earnings management activities declined prior to
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the asymmetric timeliness of earnings – a summary 2 2.1. The author’s motivation 2 2.2. The asymmetric sensitivity of earnings to returns 2 2.3. Earnings-return association versus cash flow-return association 5 2.4. The asymmetric persistence of earnings changes conditional on news 7 2.5. Conservatism and the asymmetric effect on the earnings response coeffcients 9 2.6 Further testing 11 3. International differences in the effects of asymmetric timeliness on earnings 11 3.1 Common-law versus code-law
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Can institutional investors restrain earnings management activities in weak investor protection countries? The role of foreign and domestic institutional investors UGUR LEL* This draft: February 2013 Abstract This paper investigates the role that institutional investors play in restraining earnings management activities of firms under varying investor protection environments. Distinguishing between foreign and domestic institutional ownership in a sample of about 190‚000 firm-year observations
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Question 3-3 If a “typical” firm reports $20 million of retained earnings on its balance sheet‚ could its directors declare a $20 million cash dividend without having any qualms about what they were doing? Explain your answer. Its directors could declare a $20 million cash dividend without having any qualms about what they were doing‚ because retained earnings may not held as cash. Retained earnings represent the cumulative total of all earnings kept by the company during its life. Therefore‚ $20 million
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Retained earnings is the profit generated by a company that are not distributed to stockholders (shareholders) as dividends but are either reinvested in the business or kept as a reserve for specific objectives (such as to pay off a debt or purchase a capital asset). A balance sheet figure shown under the heading retained earnings is the sum of all profits retained since the company’s inception. Retained earnings are reduced by losses‚ and are also called accumulated earnings‚ accumulated profit
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INTERNATIONAL UNIVERSITY COLLEGE Sofia “Earnings management‚ in exchange listed companies‚ is not fraud but a case of caveat emptor for investors” Coursework in BUSINESS FINANCIAL CRIME Student registration No: 479866 Program: International Finance and Trade‚ Level 2 Lecturer: A. Paparizov “Earnings management‚ in exchange listed companies‚ is not fraud but a case of caveat emptor for investors” With the development of the stock markets and the huge grow in the volume of money traded
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“The Effect of IFRS Adoption and Investor Protection on Earnings Quality Around the World” by Houqe et al. In the paper “The Effects of IFRS Adoption and Investor Protection on Earnings Quality Around the World” Houqe et al. study the interaction of two fundamental factors that influence financial reporting. So‚ the authors developed an empirical model that tested whether the quality of earnings is a function of mandatory IFRS adoption‚ the country’s investor protection and the interaction of these
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Analyzing Financial Analysts: What They Look for in Financial Reports and How They Determine Earnings’ Quality Carol M Graham‚ Mark V Cannice‚ Todd L Sayre. Journal of Management Research. New Delhi: Aug 2002. Vol. 2‚ Iss. 2; pg. 63‚ 10 pgs Abstract (Summary) The impact that financial analysts have on the share prices of publicly held companies has come under increasing scrutiny. However‚ despite the role they play in the financial markets‚ surprisingly little is known about the way in which analysts
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Chapter 1 Introduction Background to the study A motivated employee works hard and effectively because of the satisfactory feeling of fulfillment. In business management‚ motivation is an important research field. Over the years‚ there have been many motivation theories developed. One of the most famous theories is on the basis of Abraham Maslow’s hierarchy of needs. Maslow (1954) argued that individuals have a hierarchy of needs‚ and true motivation is achieved by fulfilling higher level of needs
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The 2nd Doctoral Colloquium Bridging the Gap between Theory‚ Research and Practice : IFRS Convergence and Application Faculty of Economics Universitas Indonesia Bali-Indonesia‚ 27 - 28 Oktober 2010 TAX01 INFLUENCE OF BOOK TAX GAP TOWARDS EARNINGS PERSISTENCE AND FIRM VALUE FOR THE PERIOD OF 1999 – 2007 Dwi Martani Universitas Indonesia (martani@ui.ac.id) Debby Fitriasari Universitas Indonesia (dfsari@yahoo.com) Yulianti Universitas Indonesia (yuli.a@ui.ac.id) Field of Research
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