Economics challenge the specification of discretionary accrual models. Since rent seeking firms pursue differentiated business strategies, firms in the same industry have heterogeneous accrual generating processes. Moreover, Schumpeter’s “creative destruction” forces existing firms to revise their extant business models. We present evidence that such business model shocks are widespread, propag...

According to a method of earnings management activities that administrators can manage reported earnings from the definition of real activity. In particular they can be located across time and activities in a way that accounting period to achieve a certain revenue target. Conservative attitudes of auditors in presenting their views about the independence of the auditor can considered as a remar...

a r t i c l e i n f o Previous literature finds that situations that put managers under significant levels of pressure (e.g. IPO, upcoming credit rating changes, violation of debt covenant, etc.) might affect the way earnings are manipulated. The aim of this study is to investigate whether the pressure caused by the non-temporary level of financial distress, conditions the choice between real a...

Earnings management refers to a company’s use of either accounting techniques (accrual-based earnings management) or real economic activities (real manipulate reported and mislead users financial information. It often indicates serious ethical issues in management, which will affect the reliability sustainability firm’s services supply chain. Using A-share listed Chinese firms on Shanghai Shenz...

Research background: An initial public offering (IPO) creates an excellent opportunity to research the impact of changes in institutional environment companies on trustworthiness information disclosed financial statements.
 Purpose article: The main aim study is analyze use accrual and real earnings management inflate earnings, revenue, or total assets around going event. Therefore, this p...