Debt Contracting and Real Earnings Management
نویسندگان
چکیده
منابع مشابه
Debt covenant slack and real earnings management
We examine the relation between firms’ real earnings management decisions and the slack in their net worth debt covenant. Using private debt covenant data, we find that the overall level of real earnings management is higher when net worth covenant slack is tighter. Moreover, we find that this effect is more pronounced for loan-years with the tightest slack, which is a setting where benefits of...
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We examine the relation between firms' debt maturity structures and the propensity to manage earnings. Our results indicate that (i) firms with more current debt are more susceptible to managing earnings, (ii) this relation is stronger for firms facing debt market constraints (those without investment grade debt) and (iii) auditor characteristics such as auditor quality and tenure help diminish...
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Most prior studies assume a positive relation between debt and earnings management, consistent with the financial distress theory. However, the empirical evidence for financial distress theory is mixed. Another stream of studies argues that lenders of short-term debt play a monitoring role over management, especially when the firm’s creditworthiness is not in doubt. To explore the implications ...
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Earnings prediction is one of the most important communication channels for transferring information to investors. Despite the importance of earnings prediction, few studies examined whether real earnings management are effective in predicting them. In this paper, the effect of earnings forecasting on firm risk is reviewed by considering real earnings management. Since earnings prediction char...
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Considering the soaring cost of higher education as well as the accompanying rise of student debt, prospective students can greatly benefit from such information. However, College Scorecard has faced scrutiny due to its omission of over 700 colleges, particularly community colleges, in its data set [2]. Hence, applying machine learning to fill in omissions in the data set, particularly related ...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2011
ISSN: 1556-5068
DOI: 10.2139/ssrn.1701218