We examine the impact of conditional conservatism on earnings management. Our findings support the view that conditional conservatism reduces accruals-based earnings management but also triggers a trade-off between accruals and real earnings management. Notwithstanding this trade-off, we show...

We examine whether quarterly earnings guidance induces real earnings management. Quarterly guidance may cause myopia and inefficient decision-making, as managers become overly concerned with setting and beating short-term earnings targets. We focus on guidance driven by plausibly exogenous...