This paper examines the accruals anomaly in an agency context where managers of overvalued firms engage in various activities, including accruals-based earnings management, to sustain overvaluation. We use managerial trading to operationalize the empirical investigation, hypothesizing that...

This paper looks at the relationship between insider trading and earnings management, specifically investigating it in the context of firm performance and characteristics. We find that performance improvements in years following purchases are linked to earnings management. There is also evidence...

Two market structures emerged from the privatization procedure in the Czech Republic in 1993, the Prague Stock Exchange (PSE) and the Registration Places System (RMS). The co-existence of these two parallel markets with overlapping trading hours and securities provides an opportunity to analyze...

In Australia, research companies play an important role in determining the placement of investments in the unit trust sector (analogous to mutual funds in the U.S.) through their ?approved lists? of funds that they consider to be of high quality. Individual investors rely heavily on the advice...

We examine competing explanations of the accruals anomaly, fixation and agency, using insider trading patterns and valuation measures. Quadratic regressions which control for confounding effects confirm an asymmetric relationship between trades and accruals concentrated on the selling side,...