Career concerns and earnings management
نویسندگان
چکیده
منابع مشابه
Earnings Forecast Accuracy And Career Concerns
Previous studies show that analysts’ compensation is not linked to earnings forecast accuracy. We evidence however that analysts have incentives to issue accurate forecasts. We show that brokerage houses reward their best forecasters by assigning them to large, mature firms. Covering such firms increases the potential for future compensation as these firms generate a great deal of investment ba...
متن کاملSecurity analysts’ career concerns and herding of earnings forecasts
Several theories of reputation and herd behavior (e.g., Scharfstein and Stein (1990), and Zwiebel (1995)) suggest that herding among agents should vary with career concerns. Our goal is to document whether such a link exists in the labor market for security analysts. We find that inexperienced analysts are more likely to be terminated for inaccurate earnings forecasts than are their more experi...
متن کاملAnalyzing theAnalysts: Career Concerns and Biased Earnings Forecasts
We examine security analysts’career concerns by relating their earnings forecasts to job separations. Relatively accurate forecasters are more likely to experience favorable career outcomes like moving up to a high-status brokerage house. Controlling for accuracy, analysts who are optimistic relative to the consensus are more likely to experience favorable job separations. For analysts who cove...
متن کاملThe Impact of CEO Career Concerns on Accruals Based and Real Earnings Management
This paper theoretically and empirically investigates the role of CEO career concerns on accruals based and real activities earnings management. We develop a model of earnings management, rooted in career concerns, that alternatively incorporates the features of the accrual accounting performance measurement system and the negative value-destroying effects of real activities earnings management...
متن کاملCareer Patterns and Career Concerns
This paper develops a model of career concerns. As in Holmström (1999), a worker’s productive abilities are revealed over time through output, and wages are based on expected output, and so on assessed ability. Specifically, work increases the probability that a skilled worker achieves an observable breakthrough. It is shown that effort at different times are strategic substitutes. As as result...
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ژورنال
عنوان ژورنال: Journal of Business Accounting and Finance Perspectives
سال: 2020
ISSN: 2603-7475
DOI: 10.35995/jbafp2010002