Earnings Management? Erroneous Inferences Based on Earnings Frequency Distributions

By Cindy Durtschi, Peter D. Easton. 2009

153 citations recorded by the source corpus.

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Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “…loss firms; Beaver et al. (2007), who suggest that the ‘‘kink’’ in earnings around zero can be explained by asymmetric taxes, rather than opportunistic choices; and Durtschi and Easton (2005, 2009), who show that it is explained by statistical and sample bias issues related to scaling by price.”
More Evidence of Bias in the Differential Timeliness Measure of Conditional Conservatism (2011, unknown): “Examples of studies investigating cross-sectional variation in conditional conservatism include Giner and Rees (2001), Pae et al.”
The effect of audit adjustments on earnings quality: Evidence from China (2016, background): “…among researchers as to whether the discontinuity is a valid proxy for earnings management (Burgstahler and Dichev, 1997; Degeorge et al., 1999; Dechow et al., 2003; Durtschi and Easton, 2005; Durtschi and Easton, 2009; Beaver et al., 2007; Gilliam et al. 2015; Burgstahler and Chuk, 2015).”