Do Firms Use Restructuring Charge Reversals to Meet Earnings Targets

By Stephen Moehrle. 2002

211 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/774bb343865a82e501ab37c3b3de0db660f9463c

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Citations in the corpus

Earnings Management Using the Valuation Allowance for Deferred Tax Assets under SFAS No. 109 (2003, background): “Moehrle (2002) provides evidence that firms reverse previously recorded restructuring charges to meet both analyst forecast and historical earnings targets.”
GDP management to meet or beat growth targets (2018, unknown): “…restructuring costs, taxes, and warranty reserves (An et al., 2014; Barua et al., 2010; Chapman and Steenburgh, 2011; Cohen et al., 2011; Cohen et al., 2010; Dhaliwal et al., 2004; Fan et al., 2010; Jackson and Liu, 2010; Kanagaretnam et al., 2004; Krull, 2004; Moehrle, 2002; Roychowdhury, 2006).”
Signaling Firm Performance Through Financial Statement Presentation: An Analysis Using Special Items* : Financial Statement Presentation (2009, background): “…item causes the firm to miss or beat critical benchmarks, as prior research documents that benchmarks affect the recognition of special items (e.g., Moehrle 2002; Riedl 2004) and their presentation in press releases (e.g., Schrand and Walther 2000; Lougee and Marquardt 2004), and because managers…”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “Firms make accounting choices such as managing tax expense (Dhaliwal et al., 2004), managing the classification of items within the income statement (McVay, 2006), and managing the creation and reversal of restructuring charge accruals/cushions (Moehrle, 2002).”
The effect of CEO inside debt holdings on financial reporting quality (2015, methodology): “A stream of prior research (e.g., Dhaliwal et al. 2004; Moehrle 2002; McVay et al. 2006; Ayers et al. 2006) provides evidence that earnings are likely managed when firms just meet or beat analyst earnings forecasts.”
Stock Option Compensation and Earnings Management Incentives (2003, background): “For example, option awards occurring just after the completion of fiscal year t are reported in the proxy statement as year t + 1 compensation, even though the award is most likely related to year t performance (Murphy [1999]).”
Earnings Management Using Classification Shifting: an Examination of Core Earnings and Special Items (2006, unknown): “3 Classification shifting is a different use of special items to manage earnings than the interperiod shifting documented in Burgstahler et al. (2002) and Moehrle (2002), who examine accrual management across time, using special items and restructuring charges, respectively.”
The Balance Sheet as an Earnings Management Constraint (2002, background): “Prior research 4 The Accounting Review, 2002 Supplement also shows that managers may understate assets temporarily to regain the ability to optimistically bias earnings in future periods (Moehrle 2002).”