Discretionary Accruals and Earnings Management: An Analysis of Pseudo Earnings Targets

By Benjamin C. Ayers, John (Xuefeng) Jiang, P. E. Yeung. 2006

235 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/dad030e620c26cb3128e418397aabe2aa1502498

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Citations in the corpus

Financial Crisis And Earnings Management: The European Evidence (2014, background): “with the intuition that firms manage earnings upward to avoid reporting losses, earnings declines or negative earnings surprises (Burgstahler and Dichev, 1997; Degeorge et al., 1999; Ayers et al., 2006).”
The effect of CEO inside debt holdings on financial reporting quality (2015, methodology): “A stream of prior research (e.g., Dhaliwal et al. 2004; Moehrle 2002; McVay et al. 2006; Ayers et al. 2006) provides evidence that earnings are likely managed when firms just meet or beat analyst earnings forecasts.”
Audit Quality and the Trade-Off between Accretive Stock Repurchases and Accrual-Based Earnings Management (2012, methodology): “In addition, Ayers et al. (2006) find that efforts to meet EPS targets through accruals extend to pseudo targets that may, in part, relate to analysts’ forecasts. Barton and Simko (2002) suggest that aggressive accrual-based earnings management is constrained by the cumulative nature of accruals, su”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “Baber et al. (2006) find that the market discount that investors apply to earnings that are likely to be upwardly managed declines when balance sheet information is disclosed concurrent with the earnings announcement.”
CFOs and CEOs: Who Have the Most Influence on Earnings Management? (2010, unknown): “powerful in detecting earnings management in different settings (Kothari et al. 2005; Ayers et al. 2006).”
The Incentives for Tax Planning (2012, background): “Phillips et al. (2003), Hanlon (2005), and Ayers et al. (2006) provide evidence that the divide between tax and financial reporting is partially attributable to earnings management.”
Beating Earnings Benchmarks and the Cost of Debt (2008, methodology): “I use the single most recent analyst’s forecast from the I/B/E/S detail history file instead of the consensus forecast from the I/B/E/S summary file to mitigate the effects of stale analysts’ forecasts (Brown 1991; Brown and Kim 1991; Ayers et al. 2006).”
Credit Ratings and Taxes: The Effect of Book–Tax Differences on Ratings Changes (2008, background): “8 Recent research also shows that book-tax differences are associated with firms’ propensity to just beat earnings benchmarks and tax shelter participation, indicating that book-tax difference may also be useful in detecting earnings and tax management (Philips et al. 2004; Ayers et al. 2006; Wilson”
The Effect of Cash Flow Forecasts on Accrual Quality and Benchmark Beating (2011, methodology): “(2003) and Ayers et al. (2006) actually use the change in cash flows as a RHS variable.”
Hometown advantage: The effects of monitoring institution location on financial reporting discretion (2011, unknown): “Because prior research demonstrates that signed abnormal accruals are highly associated with firm performance (e.g., Kothari et al., 2005; Ayers et al., 2006), we also consider a performance-matched abnormal accruals (AaccqRoa).22 Similar to raw abnormal accruals, we find a positive mean value of…”