Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes Oxley Periods

By Daniel A. Cohen, Aiyesha Dey, Thomas Z Lys. 2008

2,986 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/49a99ec020f602218829cd0325cc7035452925cb

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Citations in the corpus

Auditing the auditors:Evidence on the recent reforms to the external monitoring of audit firms (2010, neutral): “Recent research suggests that audit quality improved in the post-SOX era (e.g., Cohen et al., 2008; Lobo and Zhou, 2006), raising the possibility that the PCAOB reports lack information content because the documented weaknesses become less serious over time.”
Impact of proximity to debt covenant violation on earnings management (2013, positive): “This is consistent with DeAngelo et al. (1994) and Healy and Palepu (1990), who find no evidence that managers use earnings management to avoid reducing dividends.”
Abnormal real operations, real earnings management, and subsequent crashes in stock prices (2014, positive): “5 Other data sources We extract our extra control variables from the following databases: Bond issuance and seasoned equity offerings are from Thomson SDC. Analysts’ coverage and forecast consensus are from I/B/E/S summary files. The raw information about institutional investors’ holdings is from Sp”
Corporate social responsibility, real activities earnings management, and corporate governance: evidence from Korea (2016, methodology): “We calculate COMB_RM on the basis of three individual components: AB_CFO, AB_PROD, and AB_EXP, following the methodologies used by Kim, Park, and Wier (2012) and Cohen, Dey, and Lys (2008).”
Labor Unemployment Insurance and Earnings Management (2016, positive): “The second accrual model is the modified cross-sectional Jones (1991) model of Dechow et al. (1995) and used in Dechow et al. (2003) and Cohen et al. (2008).”
Internal Governance and Real Earnings Management (2016, methodology): “First, the Sarbanes-Oxley (SOX) Act exerts a shock to firms’ governance (e.g., requiring higher board independence) and the extent of real earnings management (Cohen, Dey, and Lys 2008).”
Independent audit committee characteristics and real earnings management (2014, neutral): “Cohen et al. (2008) examine real”
Real and Accrual‐Based Earnings Management in the Pre‐ and Post‐IFRS Periods: Evidence from China (2015, positive): “Cohen et al. (2008) document that managers have shifted away from accrual-based to real earnings management after the passage of SOX, consistent with managers changing their earnings management tactics in response to the increase in litigation risk and outside scrutiny in the post-SOX era. Cohen and”
How far can we trust earnings numbers? What research tells us about earnings management (2013, background): “Cohen et al. (2008) also find that accruals-based EM to achieve earnings benchmarks decreased significantly post-SOX, whilst RM significantly increased.”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “incorporate the implications of accruals into their forecasts (Kim and Schroeder, 1990; Coles et al., 2006; Burgstahler and Eames, 2003).(87) However, Bradshaw et al. (2001) and Elliott and Philbrick (1990) provide contradictory evidence.”
The effect of financial leverage on real and accrual-based earnings management (2017, methodology): “…form of deviation from possibly optimal operating decisions, with simultaneous direct cash-flow consequences, it should be more harmful for the future economic value of the firm than AM, and in line with this, past research has considered RM more costly than AM for shareholders (Cohen et al. 2008).”
Managerial ability and real earnings management (2017, background): “Consistent with the suggestions in Graham et al. (2005), Cohen, Dey, and Lys (2008) find that firms switch from accrual-based earnings management to REM following the passage of Sarbanes-Oxley Act (SOX) in 2002.”