In this paper, we investigate whether budgets ratchet. Using business-unit data from a large multinational corporation, we find evidence consistent with ratcheting where favorable budget variances result in performance budget increases that are larger than decreases associated with unfavorable...

Der vorliegende Beitrag untersucht, ob der Mehrheitsaktionär einer Gesellschaftim Vorfeld eines Zwangsausschlusses von Minderheitsaktionären (sog.Squeeze-Out) versucht, die Kapitalmarkterwartungen negativ zu beeinussen.Ein solches "manipulatives\ Verhalten wird häufig in der juristischen wie...

Der vorliegende Beitrag untersucht, ob der Mehrheitsaktionär einer Gesellschaft im Vorfeld eines Zwangsausschlusses von Minderheitsaktionären (sog. Squeeze-Out) versucht, die Kapitalmarkterwartungen negativ zu beeinflussen. Ein solches 'manipulatives' Verhalten wird häufig in der juristischen...

Prior research suggests that managers may use earnings management to meet voluntary earnings forecasts. We document the extent of earnings management undertaken within Canadian Initial Public Offerings (IPOs) and study the extent to which companies with better corporate governance systems are...

The aim of this paper is to explain relationship between earning management, corporate governance and managerial optimism through the governance characteristics that are board of directors such as independence, duality and size and ownership structure such as managerial participation, block...

Despite regulatory reforms aimed at inhibiting aggressive financial reporting, earnings management persists and continues to concern practitioners, regulators, and standard setters. To provide insight into this practice and how to mitigate it, we conduct an experiment to examine the impact of...

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...

I contribute to the extensive earnings management literature by examining the effect of market competition on the relationship between managerial ability and earnings management. The results show that in the face of increased competition, high quality managers manipulate earnings via accruals...

This paper examines whether firms that act socially responsible and have favourable board characteristics engage in a more transparent financial reporting. In particular, the first question is whether firms with high corporate social responsibility (CSR) engagement exhibit less earnings...

Purpose – Since the 1960s earnings management has been a widely researched area and became presumably known by the current accounting scandals. This paper aims at empirically showing which factors affect earnings management.Design/methodology/approach – According to former research...