Haga, Jesper; Ittonen, Kim; Tronnes, Per C.; Wong, Leon - In: Journal of Accounting Literature 41 (2018) 1, pp. 75-88
benefits associated with that choice. Specifically, we examine if discount rates are associated with the likelihood that … managers engage in earnings management to meet or beat various earnings targets. We find that discount rates are positively … management when discount rates are higher. However, the economic magnitude of this association is relatively moderate. …