Why Are Earnings Kinky? An Examination of the Earnings Management Explanation

By Patricia M. Dechow, Scott A. Richardson, İ. Tuna. 2003

842 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/8480feabd80c5b12153dfb5a961ecadb524876bf

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Citations in the corpus

Does the External Monitoring Effect of Financial Analysts Deter Corporate Fraud in China? (2014, background): “Analysts’ earnings forecasts create an important threshold for managers (Dechow et al. 2003), with negative share price consequences if they are”
Analyst Coverage and Earnings Management (2008, neutral): “, Lang and Lundholm (1993), Francis et al. (1997), Bhushan (1989), and Bushman et al.”
R&D Expenditure and Earnings Targets (2009, neutral): “management (Dechow et al., 2003; Brown and Caylor, 2005).”
The Relationship between Corporate Social Performance and Earnings Management (2010, positive): “The forward-looking model (Dechow et al., 2003) assumes that a proportion of credit sales can be anticipated and therefore are not the result of management’s discretion, thereby correcting the bias in prior models that arose from the assumption that all variations in credit sales were the result of ”
Intra-year shifts in the earnings distribution and their implications for earnings management (2007, background): “Under the assumption that the test statistic is distributed approximately normal, these results are similar to results reported in BD, Dechow et al. (2003) and Degeorge et al.”
The Quality of Accounting Information in Politically Connected Firms (2011, positive): “Dechow et al. (1996), for example, find that 38 firms subject to SEC accounting and auditing enforcement release reported higher accruals than a control group, and Richardson, et al. (2003) document that firms reported higher accruals in periods preceding earnings restatements.”
Earnings Management Using Classification Shifting: an Examination of Core Earnings and Special Items (2006, positive): “The consensus analyst forecast has become the most important earnings benchmark in recent years (Dechow et al. 2003; Brown and Caylor 2005), and this benchmark typically excludes special items and other nonrecurring charges (Philbrick and Ricks 1991).”
The Effect of Cash Flow Forecasts on Accrual Quality and Benchmark Beating (2011, methodology): “Our first measure of accrual quality is abnormal accruals as defined by the forward-looking, modified Jones model (Dechow et al., 2003).”
Tightening credit standards: the role of accounting quality (2009, positive): “In addition, following Dechow et al. (2003) and Kothari et al. (2005), we extend the modified-Jones model by 30 The slope coefficient from the regression of the annual intercept on year for the top- and bottom-25% groups is -0.09 and -0.06, respectively.”