Accrual-Based and Real Earnings Management Activities Around Seasoned Equity Offerings

By Daniel A. Cohen, Paul Zarowin. 2010

2,318 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/e303d333a4fcfb6fe0de856db6b38cafa39e4f30

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 Strategy and Management

Citations in the corpus

Languages and earnings management (2017, methodology): “because DeFond and Jiambalvo (1994) and Sweeney (1994) show that companies tend to manage earnings to avoid debt covenant violations.”
The effect of financial leverage on real and accrual-based earnings management (2017, methodology): “, Cohen and Zarowin (2010) or Roychowdhury (2006). Correlation coefficients fall between 85-90% or higher for DA estimated under the Jones vs.”
Voluntary Disclosure and Information Asymmetry: Evidence from the 2005 Securities Offering Reform: VOLUNTARY DISCLOSURE AND INFORMATION ASYMMETRY (2013, neutral): “Prior research finds that firms manage earnings both before and after an SEO (Rangan [1998]; Teoh, Welch, and Wong [1998]; Shivakumar [2000]; Cohen and Zarowin [2010]). Further, prior research provides strong evidence that managers deliberately try to meet or beat their earnings forecast by managing”
Ownership structure, control contestability, and corporate debt maturity (2015, background): “Second, when firms decide to issue new long-term debt or equity capital, insiders of these firms can manage earnings to enhance their appearance to capital providers (e.g., Cohen and Zarowin, 2010; Kim and Park, 2005; Teoh et al., 1998).”
The effect of financial reporting quality on corporate dividend policy (2017, positive): “Following prior research (e.g., Cohen and Zarowin 2010; Zang 2012), we include the number of shares outstanding (Sharesjt), analyst following (Analfolljt), equity issuance (Eqissuejt), debt issuance (Debtissuejt), and an indicator for meeting or beating analysts’ consensus forecasts (Habbeatjt) to…”
Corporate governance and earnings management in concentrated markets (2020, background): “, Datta et al. (2013), Markarian and Santaló (2014), Karuna et al.”
Impact of proximity to debt covenant violation on earnings management (2013, neutral): “Lastly, consistent with prior research (Cohen and Zarowin 2010; Rangan 15 Using OLS the coefficient on DEFAULT is significantly positive for the REMCOMBINE model and significantly negative for the REMEXP and REMCFO models at the 10 % level.”
Does Litigation Deter or Encourage Real Earnings Management? (2019, neutral): “This is cause for concern, because existing evidence indicates that REM is more opaque to external stakeholders and more negatively associated with future firm performance and stock returns than accruals management (Cohen and Zarowin 2010; Kothari, Mizik and Roychowdhury 2016).”
Managerial ability and real earnings management (2017, methodology): “Second, high ability managers understand the value-destroying consequences of REM on future firm performance (Cohen & Zarowin, 2010; Roychowdhury, 2006).”
The Real Effects of Real Earnings Management: Evidence from Innovation (2018, background): “Consistent with the role of reporting incentives, Cohen and Zarowin (2010) show that firm underperformance following seasoned equity offerings (SEOs) is driven in part by the effects of earnings management-related operational decisions.”
Entropy-balanced accruals (2020, background): “In accounting, several studies document evidence of upward accrual management around IPOs (Aharony et al., 1993; Friedlan, 1994; Teoh et al., 1998a) and SEOs (Rangan, 1998; Teoh et al., 1998b; Shivakumar, 2000; DuCharme et al., 2004; Cohen and Zarowin, 2010).”