Managerial Finance: Volume 27 Issue 12

Earnings management: a perspective

Messod D. Beneish

Compares three definitions of earnings management used by accounting researchers and three methods of estimating it: aggregate accruals, specific accruals and discontinuities in…

The impact of free cash flow, financial leverage and accounting regulation on earnings management in Australia’s “old” and “new” economies

Stewart Jones, Rohit Sharma

Outlines the rapid growth of “new economy” companies in Australia and compares their levels of earnings management with “old economy” firms, using data on all Australian listed…

Market reactions to repeat preannouncements

Leonard C. Soffer

Reviews the literature on earnings preannouncements (EPs) and investigates their use as a communication strategy and the difference in investor’s reactions to occasional, regular…

Earnings management and auditor conservatism: effects of SEC enforcement actions

James W. Bannister, David N. Wiest

Outlines previous research into the factors influencing managers’ choice of accounting procedures and auditors’ acceptance of them, including regulatory action by the US…

Growth opportunities and earnings management

Fouad AlNajjar, Ahmed Riahi‐Belkaoui

Uses previous research on firms’ potential investment (i.e. growth) opportunities, profitability and political cost/risk to suggest that a high level of growth opportunities may…

The impact of multinationality on the informativeness of earnings and accounting choices

Ahmed Riahi‐Belkaoui, Ronald D. Picur

Discusses three theories on the link between multinationality and investment value (internalization, imperfect world capital markets and managerial objectives) and develops…