Ho, Li-Chin Jennifer; Liu, Chao-Shin; Ouyang, Bo - In: Review of Accounting and Finance 11 (2012) May, pp. 120-140
Purpose – Barton and Simko argue that the balance sheet information would serve as a constraint on accrual-based earnings management. This paper aims to extend their argument by examining whether the balance sheet constraint increases managers' propensity to use either downward forecast...