Glover, Jonathan C.; Arya, Anil; Sunder, Shyam NMI - School of Management, Yale University - 1999
explanation for earnings management that is based on limitations on owners? ability to make commitments (a violation of the RP …?s assumptions). Traditionally, earnings management is seen as sneaky managers pulling the wool over the eyes of gullible owners by … manipulating accruals; our limited commitment story suggests that the owners, too, can benefit from earnings management. We …