Economic Effects of Tightening Accounting Standards to Restrict Earnings Management

By Ralf Ewert, Alfred Wagenhofer. 2005

832 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/60cd83264a48dd760746fcf7ac146e0c9f276fd2

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Citations in the corpus

The Value Relevance of International Financial Reporting Standards: Empirical Evidence in an Emerging Market (2012, background): “Barth et al. (2008) indicate that accounting standards that reduce opportunistic behavior result in accounting earnings that have high value relevance as documented by Ewert and Wagenhofer (2005).”
Real Earnings Management and Accrual-based Earnings Management in Family Firms (2014, background): “Lastly, Ewert and Wagenhofer (2005) suggest that by tightening accounting standards, the marginal benefit of using REM increases.”
The Market Reward for Achieving Analyst Earnings Expectations: Does Managing Expectations or Earnings Matter? (2011, neutral): “As an additional criterion to identify firms that are most likely engaging in real earnings management, we follow Barton and Simko (2002), Ewert and Wagenhofer (2005) and Zang (2008) who argue that firms with limited accruals management flexibility are more likely to use real earnings management.”
Impact of proximity to debt covenant violation on earnings management (2013, positive): “This finding supports the use of REM as a substitute for AEM and is consistent with Ewert and Wagenhofer’s (2005) rational expectations equilibrium model prediction that managers increase costly REM as accounting standards become tighter.”
Is Enhanced Audit Quality Associated with Greater Real Earnings Management (2011, background): “Consistent with this argument, Ewert and Wagenhofer (2005) show analytically”
What are the consequences of real earnings management (2005, background): “For example, Ewert and Wagenhofer (2004) develop an analytical model and demonstrate RM increases when tightening accounting standards make accruals management more difficult.”
Mandatory IFRS adoption: the trade-off between accrual-based and real earnings management (2017, background): “IFRS and the trade-off between accrual-based and real earnings management Ewert and Wagenhofer (2005) demonstrate that stricter regulatory regimes lead firms to replace accrual-based with real earnings management.”
Accrual-based and real earnings management and political connections (2015, background): “…the literature provides evidence that managers trade-off between two earnings management strategies based on their relative costs and benefits, using accrual-based and real earnings management as substitutes (Ewert and Wagenhofer, 2005; Cohen et al., 2008; Cohen and Zarowin, 2010; Zang, 2012).”
Does Mandatory Adoption of IFRS improve Accounting Quality? Preliminary Evidence (2013, background): “This could reduce the extent of opportunistic earnings management and thus improve accounting quality (Ewert and Wagenhofer 2005).”
The effect of accounting comparability on the accrual-based and real earnings management (2016, background): “The above evidence is consistent with the analytical results of Ewert and Wagenhofer (2005) who demonstrate that managers switch from AEM to REM in an environment of tightened accounting standards or more stringent enforcements.”
Loan Loss Provisions, Earnings Management and Capital Management under IFRS: The Case of EU Commercial Banks (2011, background): “Empirical evidence suggests that limiting opportunistic discretion increases quality of reported earnings (Ashbaugh and Pincus 2001; Ewert and Wagenhofer 2005 ).”
Should Earnings Thresholds Be Used as Delisting Criteria in Stock Market (2008, background): “Ewert and Wagenhofer (2005) study whether tightening accounting standards would restrict earnings management.”