We contribute to the extensive literature on earnings management by examining the impact of earnings management behaviour on executive compensation conditioned on managerial ability. We find that managers with better abilities are associated with more accrual earnings management, less real...

We find that IPO firms engage in real and accrual earnings management during the IPO and that big-N audit firms constrain discretionary expenses-based and accrual-based manipulations. The restriction of these forms of earnings management leads IPO firms to resort to a higher level of sales-based...

The Financial Accounting Standards Board (FASB) released Accounting Standards Codification (ASC) 606, "Revenue from Contracts with Customers", with the aim of enhancing transparency to provide fairer representation and inhibit the misuse of revenues to manipulate earnings. During COVID-19,...

This paper analyzes the relationship between real and accrual earnings management activities and IPO failure risk. Recent research shows that IPO firms manage earnings upward around the offer year utilizing real and accrual earnings management activities (e.g., Wongsunwai, 2012) and that these...