The Balance Sheet as an Earnings Management Constraint

By Jan Barton, Paul J. Simko. 2002

918 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/9315a3f248b006bfb2bf558883e010a98126e279

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Citations in the corpus

Managing Earnings Using Classification Shifting: Evidence from Quarterly Special Items (2010, background): “To validate their measure, Barton and Simko (2002) report that firms with larger net operating assets at the beginning of the current year reported more positive abnormal accruals in the previous 20”
Real and Accrual‐Based Earnings Management in the Pre‐ and Post‐IFRS Periods: Evidence from China (2015, neutral): “Fourth, we follow Barton and Simko (2002) to use net operating assets relative to sales (NOA) as a proxy for firms’ accounting flexibility because it reflects the optimistic bias in the prior periods’ accounting choices.”
Corporate Social Responsibility and Earnings Quality: International Evidence (2015, methodology): “Barton and Simko (2002) identify the lagged net operating assets scaled by lagged sales (NOA) as a limit of the flexibility for AEM.”
Analyst Coverage and Real Earnings Management: Quasi-Experimental Evidence (2014, methodology): “CA(Excl Depr): Current accruals measure excluding depreciation (Barton and Simko (2002)).”
Idiosyncratic Return Volatility and the Information Quality Underlying Managerial Discretion (2012, methodology): “Barton and Simko (2002) use post-1993 data for the same reason.”
Audit Quality and the Trade-Off between Accretive Stock Repurchases and Accrual-Based Earnings Management (2012, background): “Barton and Simko (2002) suggest that aggressive accrual-based earnings management is constrained by the cumulative nature of accruals, suggesting that managers may turn to other earnings management tools when those limits are reached.”
The Real and Accrual-based Earnings Management Behaviors: Evidence from the Split Share Structure Reform in China (2014, methodology): “Similar to the findings of Wang and D'Souza (2006), Barton and Simko (2002), and Zang (2012), our results show that the BSC coefficient has a significant and negative correlation with Please cite this article as: Kuo, J.-M., et al., The Real and Accrual-based Earnings Management Behaviors:…”
Earnings Management and Earnings Quality: Theory and Evidence (2018, positive): “This assumption is consistent with the evidence in Barton and Simko (2002) of previous optimism in financial reporting reducing managers’ ability to optimistically bias earnings in the future. Zakolyukina (2018) is a closely related paper. Zakolyukina (2018) estimates a model of earnings manipulatio”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “First, if opportunities are constrained because net asset values are already overstated, target beating is moderated (Barton and Simko, 2002).”
Religious Social Norms and Corporate Financial Reporting (2012, positive): “20 If, instead of our annual estimation method, we estimate the quarterly meet or beat determinant model following Table 5, Panel A of Barton and Simko (2002) and use the control variables specified there, we are able to replicate the Barton and Simko (2002) results and in addition observe a negativ”
Does Public Ownership of Equity Improve Earnings Quality (2010, neutral): “…consider the fact that earnings management typically involves small magnitudes of earnings both because the positive accruals needed for such an activity are in short supply (see Barton and Simko 2002) and because large-scale earnings management is more easily detected and undone by investors.”
What are the consequences of real earnings management (2005, methodology): “For example, accruals management is limited by the business operations and by accrual manipulation in prior years (Barton and Simko, 2002). In addition, accruals management must take place at the end of the year and managers face uncertainty as to which accounting treatments the auditor will allow a”
Does Litigation Deter or Encourage Real Earnings Management? (2019, positive): “In further untabulated tests, we find that increases in REM were particularly pronounced for Ninth Circuit firms that had limited ability to manipulate accruals, as measured by high net operating assets (Barton and Simko 2002; Zang 2012).”