This paper contributes to the merger and acquisitions (M&A) literature by providing evidence for role of industry relatedness in association between target firms' earnings management (EM) before deal premium offered acquirer. We argue that familiarity with industry's policies practices is a crucial factor helps acquirers see through targets' EM. Our supports this prediction relation accounting ...

This paper examines the relative importance of earnings and operating cash flows in equity valuation. In contrast to previous studies that use stock returns or future operating cash flows, we use ex post intrinsic value of equity as the criterion for comparison. Ex post intrinsic value of equity is determined adopting both the discounted dividend and residual income models with ex post (future)...

In this paper, we examine whether high-IOS (investment opportunity set) firms vis-à-vis non-growth (low-IOS) will not reduce discretionary expenditures, such as advertising expenses, research and development, SG&A (selling, general administrative) to further sustain the firm growth in a more conservative reporting environment (the post-Sarbanes-Oxley (SOX) period). We also investigate, an e...

A corporate socially responsible-focused approach adds value to a firm in the form of financial benefits addition improving its image. To meet demands various stakeholders, including consumers, employees, and shareholders, produce high-quality reporting, some managers participate CSR initiatives. The investigation relationship between social responsibility earnings management publicly listed Vi...

This paper examines the relationship between corporate governance quality, family ownership, auditor towards accrual and real earnings management activities among publicly listed firms in Indonesia. Using non-financial industry sector for period of 2010-2019, we empirically demonstrate that with higher quality have lower levels both accruals activities. Furthermore, there is evidence a level ow...

the main purpose of the present research is to determine the relationship between the management earnings forecast errors and conservatism level and then surveying about the effects of forecast difficulty, and external financing on this relationship. regarding this, the financial information related to 147 stock firms, available during the period of study (2003-2015) were collected and analyzed...

We examine the relation between auditor size and audit quality for a sample of U.K. private firms. Private firms prioritize tax considerations over reducing information asymmetry in their financial reporting. find that Big 4’s clients exhibit higher levels discretionary accruals lower precision accrual estimates than non-Big clients. Although 4 auditors are less tolerant income-increasing earni...

In this study, we explore the implications of institutional investor distraction for earnings management. Our identification approach relies on a firm-level measure that exploits exogenous attention-grabbing shocks to unrelated parts investors' portfolios. We find firms with distracted shareholders engage more in both accrual-based and real Further analyses show association between management i...