We present first evidence that the manipulation of operating cash flows through misclassification is likely to be more common in the countries with weak investor protection and governance. We also show that managers manipulate operating cash flows using different misclassification strategies....

We examine real-activity based earnings management, i.e., cuts in discretionary spending to report small profits, across introductory, growth and mature stage firms. We use the cash flow components to classify a firm's life cycle. We predict and find that firms in the mature stage, on average,...

We perform a comprehensive analysis on the relation between a firm's life cycle and its financial reporting quality. Using abnormal accruals, abnormal revenues, restatements, and others, we provide evidence that there is considerable variation in financial reporting quality across the life...

We construct a Corporate Governance Index for 500 large listed Indian firms for the period from 2003 to 2008 in this paper. The index construction uses information on four important corporate governance mechanisms: the board of directors, the ownership structure, the audit committee, and the...

Acquisitions by emerging market firms of targets located in developed markets have increased drastically over the recent years. We use this setting to test Coffee's (1999) bonding hypothesis in a cross-border M&A context by examining whether acquirers adopt the corporate governance practices...