This paper uses a case study approach to analyze how three corporations; namely, Hutchison Whampoa Limited (HWL), Hutchison Telecommunication International Limited (HTIL), and Hutchison Telecommunication Hong Kong Holdings, likely managed earnings through a series of consolidations. The author...

In this paper we test whether between-country variation in individuals' tendency to conform, as measured by a social desirability scale used in the Eysenck Personality Questionnaire, can explain differences in the propensity to employ earnings management in corporations around the world. Such a...

This paper analyzes whether differences in bank earnings management across countries can be linked to differences in the prevailing institutional and regulatory framework. Using a broad sample of 21,895 banks from 47 countries over the period 1990 to 2006, we consider three dimensions along...

In this paper, we investigate how firm reporting incentives and institutional factors affect accounting quality in firms from 26 countries. We exploit a unique multi country setting where firms are required to comply with the same set of international reporting standards. We develop an approach...

This paper examines the relation between investor protection and real earnings management. We build on the work of La Porta et al. (2000), who found that countries with different legal systems protect investors differently. Using a sample of more than 13,000 unique firms in over 54 countries,...

Does the impact of international Public Company Accounting Oversight Board (PCAOB) inspections extend beyond country borders of inspected auditors? We investigate this question by examining multinational business groups. Following initial PCAOB inspections of accounting firms auditing foreign...

The study seeks to investigate the determinants of firm level earnings management (EM) within the context of 44 countries around the world. A sample of 29 430 non-financial companies over the period 1996-2012 were analysed using a series of models that link firm-, industry-, and country-specific...

By exploiting the staggered change of legal competition environment in 58 non-US countries, we find that firms tend to inflate their earnings when domicile countries adopt stricter competition laws, which supports the pressure effect of legal competition threats. This result is robust to...

At the peak of the financial crisis in October 2008, the IASB amended IAS 39 to grant companies the option of abandoning fair value recognition for selected financial assets. Using a comprehensive global sample of publicly listed IFRS banks, we find that banks use the reclassification option to...

Mandatory pension contributions (MCs) are negative shocks to a firm's liquidity that can unfavorably impact its cost of capital, financing, and investment plans. We study whether firms faced with MCs use both non-cash (NEM) and cash generating earnings management (CEM) to partly offset their...