The use of advertising activities to meet earnings benchmarks: evidence from monthly data

By Daniel A. Cohen, Raj Mashruwala, Tzachi Zach. 2010

204 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/527c51403673aded4dfa3d1952358aab580f6573

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Citations in the corpus

From Finance to Marketing: The Impact of Financial Leverage on Customer Satisfaction (2015, background): “Cohen, Mashruwala, and Zach (2010) report that firms actively alter their advertising expenditures to meet earnings benchmarks.”
Corporate Social Performance and Firm Performance: Comparative Study among Developed and Emerging Market Firms (2019, background): “Xit represents the control variables, such as advertisement intensity [88], size [89], R&D [90], beta [91], age [92], capex intensity [93], debt equity ratio [94], debt to total assets [95], dividend yield [96], sales growth [97] and management efficiency ratio [98].”
Managing Earnings Using Classification Shifting: Evidence from Quarterly Special Items (2010, background): “23 being more prevalent in the fourth quarter (Givoly and Ronen 1981; Jeter and Shivakumar 1999; Jacob and Jorgensen 2007; Das et al. 2007; Cohen et al. 2008b) and that it is more difficult to”
Corporate investment and changes in GAAP (2016, unknown): “For example, prior research suggests that managers manipulate accruals (Healy and Wahlen 1999), cash flows (Lee 2012), and day-to-day operations (Roychowdhury 2006; Cohen et al. 2010) to achieve the desired financial reporting outcomes.”
The Real Effects of Real Earnings Management: Evidence from Innovation (2018, background): “Consistent with this framework, Cohen et al. (2008) report an increase in the use of REM following the Sarbanes-Oxley Act, as this regulation curbed accruals management.”
Substitution between Real and Accruals-Based Earnings Management after Voluntary Adoption of Compensation Clawback Provisions (2015, unknown): “The Accounting Review January 2015 improper by auditors and regulators (Jiambalvo 1996; Roychowdhury 2006; Cohen, Mashruwala, and Zach 2010).”
Evidence on the Trade-Off between Real Activities Manipulation and Accrual-Based Earnings Management (2012, unknown): “Other types of real activities manipulation that have been explored include cutting advertising expenditures (Cohen et al. 2010), stock repurchases (Hribar et al.”
GDP management to meet or beat growth targets (2018, unknown): “Subsequent studies find that discontinuity in earnings distribution can be attributed to unusual accounting treatments in accounts that are likely related to earnings management, such as bad debt allowance, discontinued operations, loan loss provisions, marketing and advertising expenses, restructur”
Abnormal real operations, real earnings management, and subsequent crashes in stock prices (2014, unknown): “As pointed out by Hutton et al. (2009), crash incidence is of great importance for risk management and option pricing.”