Predicting Earnings Management: The Case of Earnings Restatements

By Scott A. Richardson, A. Tuna, Min Wu. 2002

398 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/74f3035ea0bb2212c8e715780459a6f3de0bc0e2

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Citations in the corpus

Performance, Growth and Earnings Management (2006, background): “26 For instance, see Agarwal and Chadha (2003), Beasley (1996), Desai, Hogan, and Wilkins (2004), Farber (2005), Richardson, Tuna, and Wu (2002), and Srinivasan (2005). the financial periods on which the restatements affect.”
The Determinants of Operational Risk in U.S. Financial Institutions (2011, background): “…to avoid debt covenant violations (DeFond and Jiambalvo (1994), Sweeney (1994), and Dichev and Skinner (2002)), which would imply that the likelihood of misreporting is positively related to financial leverage (Richardson, Tuna, and Wu (2002), Burns and Kedia (2006), and Efendi et al. (2007)).”
Asset Quality Misrepresentation by Financial Intermediaries: Evidence from the RMBS Market: Asset Quality Misrepresentation by Financial Intermediaries (2015, neutral): “Our work is also related to a large empirical literature in accounting and finance that investigates various aspects of corporate fraud (e.g., Richardson, Tuna, and Wu (2002), Burns and Kedia (2006), Kedia and Philippon (2009), Efendi, Srivastava, and Swanson (2007), Dyck, Morse, and Zingales…”
Determinants of Weaknesses in Internal Control over Financial Reporting (2007, methodology): “Our financial health measures, AGGREGATE LOSS and BANKRUPTCY RISK, both indicate that firms disclosing material weaknesses in internal control are significantly weaker financially than the average Compustat firm, as expected.”
Adopting a Label: Heterogeneity in the Economic Consequences Around IAS/IFRS Adoptions (2013, background): “Sloan (1996), Bradshaw et al. (2001) and Richardson et al. (2002) show that the decomposition of earnings into accruals and operating cash flow as well as extreme accruals contain important information (e.g., with respect to future restatements and SEC enforcement actions).”
Why Do Corporate Managers Misstate Financial Statements? the Role of Option Compensation and Other Factors (2007, neutral): “, Dechow, Sloan, and Sweeney, 1996) and restatements during other time periods (Richardson et al., 2003), a pattern of significance is developing in the empirical literature.”
Earnings Management Strategies and the Trade‐Off between Tax Benefits and Detection Risk: To Conform or Not to Conform? (2009, background): “We also contribute to research that seeks to predict accounting irregularities, including fraudulent reporting (Richardson et al., 2002; Dechow et al. 2007), by demonstrating that total book-tax differences, and its major component, temporary differences, are incrementally useful in predicting resta”
Institutional investors, shareholder activism, and earnings management (2011, background): “Similarly, Richardson et al. (2002) find that earnings management is positively related to subsequent earnings restatements.”
Responsible investing: The ESG-efficient frontier (2020, neutral): “…shows companies that are subject to SEC enforcement actions tend to have abnormally high accruals prior to such actions (e.g., Richardson, Sloan, Soliman, and Tuna, 2006) and companies with high accruals also have a higher likelihood of earnings restatements (e.g., Richardson, Tuna, and Wu, 2002).”
Fee Pressure and Audit Quality (2014, positive): “ACCRUAL The change in noncash working capital plus the change in noncurrent operating assets plus the change in net financial assets following Richardson et al. (2002)”