There are three ways to manage earnings, namely, accruals earnings management, real activities manipulation, and shifting of core expense. The famous methods to manage earnings are accruals earnings management and rea...There are three ways to manage earnings, namely, accruals earnings management, real activities manipulation, and shifting of core expense. The famous methods to manage earnings are accruals earnings management and real activities manipulation. Usually, real activities manipulation is conducted on the going period. The action will increase the loss for the firms at the end of the period. To avoid the loss, managers will manage earnings through accruals （discretionary accruals）. Therefore, the objective of this study is to investigate whether real activities manipulation positively influences accruals earnings management. To investigate the issue, this study collected data from Indonesia Stock Exchange （IDX）. Samples of this study are the manufacturing companies. There are 196 firms from the year 2003 to 2007. The results of this study support the research hypothesis that real activities manipulation positively influences accruals earnings management. The higher the real activities manipulation effects, the higher the accruals earnings management at the end of the period.There are three ways to manage earnings, namely, accruals earnings management, real activities manipulation, and shifting of core expense. The famous methods to manage earnings are accruals earnings management and real activities manipulation. Usually, real activities manipulation is conducted on the going period. The action will increase the loss for the firms at the end of the period. To avoid the loss, managers will manage earnings through accruals （discretionary accruals）. Therefore, the objective of this study is to investigate whether real activities manipulation positively influences accruals earnings management. To investigate the issue, this study collected data from Indonesia Stock Exchange （IDX）. Samples of this study are the manufacturing companies. There are 196 firms from the year 2003 to 2007. The results of this study support the research hypothesis that real activities manipulation positively influences accruals earnings management. The higher the real activities manipulation effects, the higher the accruals earnings management at the end of the period.展开更多
This paper examines systematic differences in earnings management through real activity manipulation and accrual manipulation across 7 Asia countries. The study proposes arguments that in economies with high investor ...This paper examines systematic differences in earnings management through real activity manipulation and accrual manipulation across 7 Asia countries. The study proposes arguments that in economies with high investor protection, managers prefer to manage earnings through real activity manipulation rather than through accrual manipulation because accrual manipulation is more likely to draw auditors or regulators scrutiny than real decisions about pricing and production. The study findings are consistent with prediction. Despite being in economies with high investor protection, managers still have bigger discretion in managing earnings through real activities rather than accrual manipulation.展开更多
Unlike previous studies that focus on accrual-based earnings management, this study analyzes real activities manipulation and investigates whether female directors on boards of directors(Bo Ds) affect managers' re...Unlike previous studies that focus on accrual-based earnings management, this study analyzes real activities manipulation and investigates whether female directors on boards of directors(Bo Ds) affect managers' real activities manipulation. Using a large sample of 11,831 firm-year observations from Chinese listed companies from the 2000 to 2011 period, we find that higher female participation on Bo Ds is associated with lower levels of real activities manipulation, and that this negative relationship is stronger when female directors have higher ownership. These results hold for a battery of robustness checks.Overall, our findings indicate that board gender diversity may serve as a substitute mechanism for corporate governance to curb real activities manipulation and thus provide interested stakeholders with higher quality earnings reports.展开更多
文摘There are three ways to manage earnings, namely, accruals earnings management, real activities manipulation, and shifting of core expense. The famous methods to manage earnings are accruals earnings management and real activities manipulation. Usually, real activities manipulation is conducted on the going period. The action will increase the loss for the firms at the end of the period. To avoid the loss, managers will manage earnings through accruals （discretionary accruals）. Therefore, the objective of this study is to investigate whether real activities manipulation positively influences accruals earnings management. To investigate the issue, this study collected data from Indonesia Stock Exchange （IDX）. Samples of this study are the manufacturing companies. There are 196 firms from the year 2003 to 2007. The results of this study support the research hypothesis that real activities manipulation positively influences accruals earnings management. The higher the real activities manipulation effects, the higher the accruals earnings management at the end of the period.There are three ways to manage earnings, namely, accruals earnings management, real activities manipulation, and shifting of core expense. The famous methods to manage earnings are accruals earnings management and real activities manipulation. Usually, real activities manipulation is conducted on the going period. The action will increase the loss for the firms at the end of the period. To avoid the loss, managers will manage earnings through accruals （discretionary accruals）. Therefore, the objective of this study is to investigate whether real activities manipulation positively influences accruals earnings management. To investigate the issue, this study collected data from Indonesia Stock Exchange （IDX）. Samples of this study are the manufacturing companies. There are 196 firms from the year 2003 to 2007. The results of this study support the research hypothesis that real activities manipulation positively influences accruals earnings management. The higher the real activities manipulation effects, the higher the accruals earnings management at the end of the period.
文摘This paper examines systematic differences in earnings management through real activity manipulation and accrual manipulation across 7 Asia countries. The study proposes arguments that in economies with high investor protection, managers prefer to manage earnings through real activity manipulation rather than through accrual manipulation because accrual manipulation is more likely to draw auditors or regulators scrutiny than real decisions about pricing and production. The study findings are consistent with prediction. Despite being in economies with high investor protection, managers still have bigger discretion in managing earnings through real activities rather than accrual manipulation.
基金financial support from the National Natural Science Foundation of China (Grant Nos.71202061,71572160 and 71672197)Program for New Century Excellent Talents in University of Fujian Province (2015)Program for Cultivating Outstanding Young Research Talents in University of Fujian Province (2015)
文摘Unlike previous studies that focus on accrual-based earnings management, this study analyzes real activities manipulation and investigates whether female directors on boards of directors(Bo Ds) affect managers' real activities manipulation. Using a large sample of 11,831 firm-year observations from Chinese listed companies from the 2000 to 2011 period, we find that higher female participation on Bo Ds is associated with lower levels of real activities manipulation, and that this negative relationship is stronger when female directors have higher ownership. These results hold for a battery of robustness checks.Overall, our findings indicate that board gender diversity may serve as a substitute mechanism for corporate governance to curb real activities manipulation and thus provide interested stakeholders with higher quality earnings reports.
