Does Earnings Management Affect Firms' Investment Decisions?

By Maureen F. McNichols, Stephen R. Stubben. 2008

901 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/0e124829e0ed1b857e4c8095b281bd30061c273d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

A review of tax research (2010, positive): “64 affects investment decisions (e.g. McNichols and Stubben, 2008; Biddle et al., 2009), but these studies generally ignore tax considerations.”
Financial reporting quality, debt maturity and investment efficiency (2014, methodology): “On the other hand, FRQ could also improve investment efficiency by allowing managers to make better investment decisions through a better identification of projects and more truthful accounting numbers for internal decision makers (Bushman and Smith, 2001; McNichols and Stubben, 2008).”
Accounting Conservatism and Firm Investment Efficiency (2016, positive): “2 See, among others, Bens and Monahan (2004), Biddle and Hilary (2006), Hope and Thomas (2008), McNichols and Stubben (2008), Biddle et al. (2009), Beatty et al. (2010), and Cheng et al. (2013). underinvestment in financially constrained firms is novel, as prior research focuses only on the role of…”
How Does Financial Reporting Quality Relate to Investment Efficiency (2009, positive): “…contribute to a growing body of literature that studies relations between financial reporting quality and investment (e.g., Bens and Monahan, 2004; Biddle and Hilary, 2006; Bushman et al., 2006; Beatty et al., 2008; Francis and Martin, 2008; Hope and Thomas, 2008; McNichols and Stubben, 2008).”
Managerial Ability, Investment Efficiency and Stock Price Crash Risk (2017, positive): “…also use an expanded version of equation (1) whereby we estimate the following model incorporating the differential predictability for revenue increases and revenue decreases in order to determine the magnitude of over (under)-investment (Eberly 1997; McNichols and Stubben 2008, Chen et al., 2011).”
Board Interlocks and Earnings Management Contagion (2013, background): “…restatements to identify earnings management activity include Palmrose, Richardson and Scholz (2004), Hribar and Jenkins (2004), Lee, Li and Yue (2006), Gleason, Jenkins and Johnson (2008), Kedia and Rajgopal (2008), McNichols and Stubben (2008), and Badertscher, Phillips, Pincus, and Rego (2009).”
Corporate investment and changes in GAAP (2016, positive): “…agency problems (Biddle et al. 2009; Balakrishnan et al. 2014, 2016; Shroff 2015), (2) informing managers of the disclosing firms and peer firms (McNichols and Stubben 2008; Badertscher et al. 2013; Shroff et al. 2014), and (3) serving as a signal of managers’ forecasting ability (Goodman et…”
The influence of corporate social responsibility on investment efficiency and innovation (2019, positive): “…model of total investment as a function of growth opportunities (Biddle et al. 2009), investment opportunities and internal financing capabilities (McNichols and Stubben 2008), and consider the residuals from this model to capture deviations from expected investment (i.e., inefficient investment).”
Financial Reporting Quality and Labor Investment Efficiency (2014, neutral): “efficient capital investments (e.g., Biddle and Hilary 2006; McNichols and Stubben 2008; Biddle et al. 2009).”
Financial credibility, ownership, and financing constraints in private firms (2011, positive): “For internal decision-making, prior research shows that high-quality financial information helps business managers identify good projects and increase investment efficiency (e.g., Chen, Hope, Li, & Wang, 2011; McNichols & Stubben, 2008).”