Overvaluation and the Choice of Alternative Earnings Management Mechanisms

By Brad A. Badertscher. 2011

471 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/b45276a58204aa84641eed1c3aee074318c61578

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Citations in the corpus

Financial Reporting and the Protection of Socioemotional Wealth in Family-Controlled Firms (2014, background): “From this point of view, ‘real’ earnings management (earnings management that implies taking actions with cash flow consequences) (Badertscher, 2011; Zang, 2012) may represent a costly practice.”
Accrual-based and real earnings management and political connections (2015, unknown): “Firms can use multiple earnings management strategies to manage their earnings, i.e., accrual-based and real earnings management (e.g. Badertscher, 2011).”
Substitution between Real and Accruals-Based Earnings Management after Voluntary Adoption of Compensation Clawback Provisions (2015, unknown): “Following Cohen and Zarowin (2010), we also create two overall measures of real transactions management by summing ABCash and ABExp (RTM1), and ABProd and ABExp (RTM2), respectively.”
How far can we trust earnings numbers? What research tells us about earnings management (2013, methodology): “Building on Jensen’s theory, Badertscher (2011) examines how overvaluation affects management’s use of alternative EM methods.”
The Real Effects of Real Earnings Management: Evidence from Innovation (2018, background): “There is well-documented evidence of substitution between these two types of earnings management strategies (e.g., Cohen et al. 2008; Cohen and Zarowin 2010; Badertscher 2011; Zang 2012).”
Corporate Social Responsibility and Earnings Quality: International Evidence (2015, background): “, 2008) and might undermine the firm's credibility and reputation in the market as well as among stakeholders (Badertscher, 2011; Desai, Hogan, & Wilkins, 2006; Palmrose, Richardson, & Scholz, 2004).”
Evidence on the Trade-Off between Real Activities Manipulation and Accrual-Based Earnings Management (2012, background): “2005) and evidence that firms make choices between the two earnings management strategies (Cohen et al. 2008; Cohen and Zarowin 2010; Badertscher 2011).”
The impact of SME’s pre-bankruptcy financial distress on earnings management tools (2015, background): “…&Wagenhofer, 2005), thefiscal and legal regime of the countries in which firms operate (Durnev, 2010; Enomoto et al., in press), firm’s stock prices (Badertscher, 2011), audit quality (Burnett, Cripe, Martin, & McAllister, 2012), external monitoring (Wongsunwai, 2012), the effect of regulated…”
Conditional conservatism and the limits to earnings management (2020, unknown): “(2008), Badertscher (2011), Zang (2012) and Wongsunwai (2013) on the determinants of the trade-offs between accruals-based and real earnings management.”
Is Earnings Quality Associated with Corporate Social Responsibility (2012, unknown): “We rely on prior studies (e.g., Roychowdhury 2006; Cohen et al. 2008; Cohen and Zarowin 2010; Badertscher 2011; Zang 2012) to develop our proxies for real activities manipulation.”
The effect of financial leverage on real and accrual-based earnings management (2017, background): “This evidence could be broadly consistent with findings by Badertscher (2011) that firms use RM to sustain their overvaluation.”
The Impact of Religion on Financial Reporting Irregularities (2012, unknown): “In addition, our findings extend research that examines managers’ earnings management activities (e.g., Cohen et al. 2008; Cohen and Zarowin 2010; Badertscher 2011; Zang 2012) by providing evidence consistent with managers in religious areas appearing to favor real earnings management over accrual m”
Does Litigation Deter or Encourage Real Earnings Management? (2019, unknown): “Similarly, Badertscher (2011) provides evidence that managers engage in REM to sustain overvaluation only when they have exhausted their ability to manage accruals.”
The Real and Accrual-based Earnings Management Behaviors: Evidence from the Split Share Structure Reform in China (2014, methodology): “(2008) and Badertscher (2011), we view RM and AM as distinct to each other.”