This study examines the extent to which incorporating current-period and/or cumulative real activities earnings management in default models enhances their predictability. Aiming at Altman's (1968) Z-score as well as Ohlson's (1980) O-score predictors, such adjustments help mitigate the...

This study examines whether a regulation on mandatory disclosure of earnings forecasts encourages managers to issue more optimistic earnings forecasts, and whether the optimistic forecasts are revised downward or the reported earnings are managed upward using discretionary accruals to reduce the...