Managing Earnings Using Classification Shifting: Evidence from Quarterly Special Items

By Yun Fan, Abhijit Barua, William M. Cready, Wayne B. Thomas. 2010

279 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/99b702618ff9cfd2340f70fb59faf88d30576de1

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Xiaohua Fang
2. Jeffrey L. Callen
3. John M. McInnis
4. R. Jennings
5. Chan Lyu
6. Kemin Wang
7. Xin Zhang
8. Frank Zhang

In Finance

1. Xiaohua Fang
2. Jeffrey L. Callen
3. John M. McInnis
4. R. Jennings
5. Chan Lyu
6. Kemin Wang
7. Xin Zhang
8. Frank Zhang

In Strategy and Management

1. Xiaohua Fang
2. John M. McInnis
3. Jeffrey L. Callen
4. Dain C. Donelson
5. Xuerong Huang
6. Li Sun

Citations in the corpus

• Managerial ability and real earnings management (2017, result): “Consistent with the suggestions in Graham et al. (2005), Cohen, Dey, and Lys (2008) find that firms switch from accrual-based earnings management to REM following the passage of Sarbanes-Oxley Act (SOX) in 2002.”
• GDP management to meet or beat growth targets (2018, background): “Subsequent studies find that discontinuity in earnings distribution can be attributed to unusual accounting treatments in accounts that are likely related to earnings management, such as bad debt allowance, discontinued operations, loan loss provisions, marketing and advertising expenses, restructur”
• Changes Over Time in the Revenue-Expense Relation: Accounting or Economics? (2011, background): “13 Recent research by McVay (2006) and Fan et al. (2010) provides evidence that managers opportunistically manage recurring firm performance by including recurring charges as one-time special items.”
• Crash Risk and the Auditor-Client Relationship (2017, background): “Similarly, classification shifting and the quality of the notes that accompany financial statements fall within the purview of auditors but they are not reflected in accrual manipulation metrics either (e.g., McVay 2006; Fan et al. 2010; Lee 2012; Ghosh and Tang 2015a).”
• Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle (2018, unknown): “A major limitation of the few existing studies (Abernathy et al. 2014; Alfonso et al. 2015; Fan et al. 2010; Haw et al. 2011; Zalata and Roberts 2016, 2017) is that they have often treated all CEOs engaged in classification shifting as the same, irrespective of their background, specifically their g”