Earnings Management Using Classification Shifting: an Examination of Core Earnings and Special Items

By Sarah E. McVay. 2006

737 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/b8671f0c91d44888c748e6acba35e06a99f2b9e0

How researchers see this paper

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

In Accounting

In Finance

In Strategy and Management

Citations in the corpus

The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly (2006, positive): “Are implications different for cash special items (e.g., McVay, 2006 )? Can an analysis in the spirit of Piotroski (2000) and Mohanram (2005) distinguish special item-low accrual firms that delist from those that turn themselves around? What actions do managers take that reverse the market’s percep”
Sec Scrutiny and the Evolution of Non-Gaap Reporting (2008, positive): “Managers can present current period recurring expenses as ‘‘transitory’’ by designating them as special items in their SEC-filed financial statements (McVay 2006) or by labeling them as nonrecurring items within the press release (Doyle et al.”
Earnings management or forecast guidance to meet analyst expectations? (2009, positive): “McVay (2006) examines classification shifting by US firms using special items.”
Managing Earnings Using Classification Shifting: Evidence from Quarterly Special Items (2010, methodology): “McVay (2006) concludes that, on an annual basis, managers opportunistically shift core expenses, resulting in a positive relation between unexpected core earnings and the amount of negative special items.”
Using Nonfinancial Measures to Assess Fraud Risk (2009, methodology): “management (Albrecht et al. 2006; Marquardt and Wiedman 2004; McVay 2006 ).”
The Disclosure of Non-GAAP Earnings Information in the Presence of Transitory Gains (2014, positive): “It is important to note, however, that these components include income-decreasing special items, and there is prior evidence that managers shift recurring expenses to transitory expenses (McVay 2006; Kolev et al. 2008).”
Long-Run Corporate Tax Avoidance (2008, background): “that “A potential client once said that he would hire the firm if we could get his tax rate down, because it was higher than their competitors’ and they were embarrassed” (Novack and Saunders 1998). 8 See Rego (2003), Mills, Erickson and Maydew (1998), Collins and Shackelford (1995), Gupta and Newbe”
Disclosure Tone and Shareholder Litigation (2011, background): “earnings surprises. McVay (2006) describes how managers appear to opportunistically shift”
Signaling Firm Performance Through Financial Statement Presentation: An Analysis Using Special Items* : Financial Statement Presentation (2009, neutral): “Finally, McVay (2006) documents that managers opportunistically shift reported expenses from core expenses (such as cost of goods sold) to special items, thereby overstating “core” earnings.”
The Structure of Voluntary Disclosure Narratives: Evidence from Tone Dispersion: the structure of voluntary disclosure narratives (2015, background): “…timing (Kasznik and Lev [1995]; Libby and Tan [1999]) and pro forma earnings 2 Electronic copy available at: https://ssrn.com/abstract=2375898 (McVay 2006; Curtis, McVay, and Whipple 2013), we find that tone dispersion is associated with managers’ financial reporting choices (e.g., earnings…”