Do managers credibly use accruals to signal private information? Evidence from the pricing of discretionary accruals around stock splits

By Henock Louis, Dahlia Robinson. 2005

278 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/4951c37eb2adb9ce73d1a9e3c8ac641dd51b6603

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Citations in the corpus

Hometown advantage: The effects of monitoring institution location on financial reporting discretion (2011, unknown): “) find institutional investors located in proximity to a firm are more informed than institutional investors vide robust evidence that geographical proximity to a firm reduces information acquisition costs of banks nd Kim, 2008), and analysts (Malloy, 2005).”
Abnormal real operations, real earnings management, and subsequent crashes in stock prices (2014, unknown): “A similar signaling theory with respect to DA is frequently argued and supported in the empirical literature (e.g., Chaney and Lewis 1995; Linck et al. 2013; Louis and Robinson 2005; Subramanyam 1996; Wu and Robin 2014).”
Alternative Information Sources and Information Asymmetry Reduction: Evidence from Small Business Debt (2015, background): “Accounting-Based Lending The following sections discuss these methods and their potential interactions in small business lending decisions.”
Do Managers Intentionally Use Repurchase Tender Offers to Signal Private Information? Evidence from Firm Financial Reporting Behavior (2007, background): “particular, Louis and Robinson (2005) find that managers use discretionary accruals to reinforce stock split signals.”
The Effects of Firm Growth and Model Specification Choices on Tests of Earnings Management in Quarterly Settings (2017, background): “Discretionary Accrual Measure Stock Splits Louis and Robinson (2005) SEOs Rangan (1998) Stock Acquisitions Louis (2004) and Gong et al.”
The Bright Side of Managerial Over-Optimism (2016, methodology): “hold if we adjust for seasonal effects in quarterly earnings (Louis and Robinson, 2005), or control for lagged accruals in estimating discretional accruals (Gong, Louis, and Sun, 2008).”
Is Earnings Management Opportunistic or Beneficial? An Agency Theory Perspective (2008, unknown): “Louis (2003) examines the signaling function of discretionary accruals by investigating earnings management around stock splits.”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “Some examples of such studies include the following: Louis and Robinson (2005) who find that stock split announcements add credibility to accruals; Levi (2008) who finds that the accrual anomaly exists only for firms that delay the release of accrual information to their 10-”
Stock split size, signaling and earnings management: Evidence from the Spanish market (2007, background): “Louis and Robinson (2005) consider that managers do not manage earnings upward to mislead investors but to convey favorable private information to the market, given that abnormal positive returns around split announcements are significantly related to a proxy for earnings quality.”
Managerial Ability and Income Smoothing (2019, unknown): “…examining the usefulness of smoothing and, more broadly, to the literature on the use of financial reporting to communicate managers’ private information (Subramanyam 1996; Demski 1998; Louis and Robinson 2005; Tucker and Zarowin 2006; Louis and White 2007; Badertscher, Collins, and Lys 2012).”
Value of Cash Holdings and Accounting Conservatism (2011, unknown): “13 McNichols (2002) argues that changes in sales revenue and plant, property and equipment are important in forming expectations about current accruals, over and above the effects of operating cash flows.”