Earnings Management and Firm Performance Following Open-Market Repurchases

By Guojin Gong, Henock Louis, Amy X. Sun. 2008

357 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/19789009a1f992578056f5b80b65e49085f6c30b

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Citations in the corpus

Can Managers Time the Market? Evidence Using Repurchase Price Data (2015, background): “Lie (2005) shows that firms’ operating profitability improves following a repurchase announcement, while Gong, Louis, and Sun (2008) show that this is due, at least in part, to pre-repurchase announcement downward earnings management.”
Stock split size, signaling and earnings management: Evidence from the Spanish market (2007, background): “Similarly, there is evidence of downward earnings management prior to stock repurchases (Gong et al., 2006).”
Do More Reputable Financial Institutions Reduce Earnings Management by IPO Issuers (2011, methodology): “Following the extant literature (Teoh et al., 1998a, 1998b; Louis, 2004; Louis and White, 2007; Gong et al. , 2008a, 2008b, Louis et al., 2008), we proxy for EM by the level of a firm’s abnormal accruals using the residual from a modified version of the Jones (1991) accruals model.”
Do State Enterprises Manage Earnings More than Privately Owned Firms? The Case of China (2011, unknown): “management occurs frequently among US corporations (Teoh et al., 1998a and 1998b; Erickson and Wang, 1999; Gong et al., 2008; and Bergstresser and Philippon, 2006), there is less evidence in emerging economies and it is not clear whether business managers in state-owned firms would behave in the sam”
Professors in the Boardroom and Their Impact on Corporate Governance and Firm Performance: Professors in the Boardroom (2014, methodology): “For example, using IPO and stock repurchases as market events, Teoh, Welch, and Wong (1998) and Gong, Louis, and Sun (2008) find a negative relation between earnings management and firm market performance.”
The Real Effects of Share Repurchases (2016, unknown): “7 Other related papers are Gong, Louis, and Sun (2008), who show that firms manage earnings downwards prior to the announcement of new repurchase programs, and Cheng et al. (forthcoming), who show that the likelihood and magnitude of repurchases increase when a CEO’s bonus is directly tied to…”
Share Repurchases as a Potential Tool to Mislead Investors (2010, unknown): “This finding contrasts with Gong et al. (2008).”
Abnormal real operations, real earnings management, and subsequent crashes in stock prices (2014, unknown): “Existing literature has already provided such evidence for AEM (see Jones 1991; Perry and Williams 1994; DeFond and Subramanyam 1998; Baker et al. 2003; Guan et al. 2005; Gong et al. 2008).”
The Association Between Management Earnings Forecast Errors and Accruals (2009, background): “For instance, managers might manipulate accruals downward prior to share repurchases or stock option grants to boost potential gains from repurchased stocks or awarded stock options (Gong et al. 2008; Baker et al. 2003), and these firms may also provide pessimistic earnings forecasts prior to these ”
The Effects of Firm Growth and Model Specification Choices on Tests of Earnings Management in Quarterly Settings (2017, background): “…accruals when testing for earnings management (DeFond and Jiambalvo 1994; Beneish 1998; Rangan 1998; Teoh, Welch, and Wong 1998a, 1998b; Young 1999; Louis 2004; Botsari and Meeks 2008; Gong, Louis, and Sun 2008; Baber, Kang, and Li 2011; Burnett, Cripe, Martin, and McAllister 2012; among others).”