Timing earnings

Donghua Chen, Xiangqin Qi, Yongjian Shen, Huimiao Lin

Since the opening of China’s securities market, there have been a number of bull and bear cycles. This paper discusses how executives use the market timing approach to manage earnings in different cycles to maximize firm value. We find that Chinese listed companies choose to release more earnings during bull markets and this phenomenon is more evident in companies that are more profitable and have higher valuations. We also find that executives who do not release more earnings during bull markets are more likely to be dismissed.

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Year of publication:	December 2011
Authors:	Chen, Donghua ; Qi, Xiangqin ; Shen, Yongjian ; Lin, Huimiao
Published in:	China journal of accounting research : CJAR. - Guang dong sheng guang zhou shi : [Verlag nicht ermittelbar], ISSN 2214-1421, ZDB-ID 2548343-2. - Vol. 4.2011, 4, p. 211-232
Subject:	Stock market cycle \| Earnings management \| Market timing \| Bilanzpolitik \| Accounting policy \| Börsenkurs \| Share price \| Aktienmarkt \| Stock market \| Kapitaleinkommen \| Capital income \| Zeit \| Time

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.1016/j.cjar.2011.10.001 [DOI] hdl:10419/187560 [Handle]
Classification:	E32 - Business Fluctuations; Cycles ; E44 - Financial Markets and the Macroeconomy ; M41 - Accounting ; m43
Source:	ECONIS - Online Catalogue of the ZBW

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