Ronen / Yaari Earnings Management

Emerging Insights in Theory, Practice, and Research
1. Auflage 2008
ISBN: 978-0-387-25771-6
Verlag: Springer
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, Band 3, 582 Seiten

Reihe: Springer Series in Accounting Scholarship

This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?

Dr. Joshua Ronen, a leader in economic analysis, has more than 30 years of experience in economics, finance, accounting and research. He is Research Professor of Accounting at Stern School of Business, New York University, which he joned as a faculty member in 1973. From 1970 to 1974, he served on the faculty of the University of Chicago Business School. He received his BA in Accounting and Economics from the Hebrew University and his Ph.D. (1969) in Business Administration from Stanford University. He is also a licensed CPA in Israel and has practiced public accounting for seven years. Dr. Ronen has served or is serving on numerous journals, including The Accounting Review, The Journal of Accounting Research, Accounting, Organizations and Society, Review of Quantitative Finance & Accounting, Journal of Accounting and Public Policy, The British Accounting Review, The Journal of International Financial Analysis. He also served as Editor-In-Chief of the Journal of Accounting, Auditing and Finance.Dr. Varda Yaari is an Associate Professor at Morgan State University, Maryland, USA. 2002-2003: Senior Lecturer: Ben-Gurion University. 1998 - 2001: Lecturer: Ben-Gurion University. Coordinator of Accounting Area. Dr. Yaari received his Ph.D. in Philosophy in 1989 from the Stern School of Business, NYU and his Master of Arts (Economics), 1979 from Tel-Aviv University.

Autoren/Hrsg.

Ronen, Joshua

Yaari, Varda

Inhaltsverzeichnis

1;Contents;7
2;Introduction;12
2.1;The Demand for Earnings Management Research;13
2.2;Historical Perspective: The Milestones;15
2.3;The Plan of the Book;17
2.4;Acknowledgments;18
3;Part 1;20
3.1;1 The Importance of Earnings;22
3.1.1;1.1 The Dual Role of Accounting;23
3.1.2;1.2 The Value Relevance of Earnings;25
3.1.3;1.3 Summary;40
3.2;2 Definition of Earnings Management;42
3.2.1;2.1 Definition;42
3.2.2;2.2 The Methods to Manage Earnings;48
3.2.3;2.3 Managing GAAP Earnings Through Pro forma Earnings;51
3.2.4;2.4 Summary;55
4;Part 2;56
4.1;The Players;57
4.2;The Sarbanes-Oxley Act;59
4.3;The Plan of Part 2;69
4.4;3 The Management;72
4.4.1;3.1 Background;73
4.4.2;3.2 Compensation;84
4.4.3;3.3 CEO Turnover;108
4.4.4;3.4 Insider Trading;116
4.4.5;3.5 Management Buyouts;125
4.5;4 Users;128
4.5.1;4.1 Shareholders;129
4.5.2;4.2 Earnings Management Events;150
4.5.3;4.3 Bondholders and Other Creditors;171
4.5.4;4.4 Regulators;186
4.5.5;4.5 Employees;196
4.5.6;4.6 Competitors, Suppliers, and Customers;197
4.5.7;Appendix;199
4.6;5 Gatekeepers;201
4.6.1;5.1 The Demand for Gatekeepers;201
4.6.2;5.2 Analysts;205
4.6.3;5.3 Governance—Ownership;234
4.6.4;5.4 Governance—the Board of Directors;250
4.6.5;5.5 Auditors;277
4.6.6;5.6 The Press;295
5;Part 3;298
5.1;The Demand for Theory;299
5.2;The Plan of Part 3;301
5.3;6 Truth-Telling;305
5.3.1;6.1 Capital Markets;305
5.3.2;6.2 Governance;313
5.3.3;6.3 Product/Factor Markets;317
5.3.4;6.4 Regulation;323
5.3.5;Appendix: The Disclosure Principle;326
5.4;7 Smoothing;328
5.4.1;7.1 Capital Markets;330
5.4.2;7.2 Governance;339
5.4.3;7.3 Product Market Competition;344
5.4.4;7.4 Regulation;346
5.4.5;Appendix: Artificial Smoothing Motivated by Consumption Smoothing;347
5.5;8 Maximization and Minimization;352
5.5.1;8.1 Capital Market;354
5.5.2;8.2 Governance;364
5.5.3;8.3 The Competitive Environment;369
5.5.4;8.4 Regulation;372
5.5.5;8.5 Summary;377
6;Part 4;379
6.1;Accruals;380
6.2;The Plan of Part 4;384
6.3;9 The Accruals Process;385
6.3.1;9.1 Non-discretionary Accruals;385
6.3.2;9.2 The Effect of Earnings Management on Accruals;389
6.3.3;9.3 Accruals and Cash Flows;392
6.3.4;Appendix: Accruals when the Firm Carries Inventories;395
6.4;10 The Accruals Methodology;397
6.4.1;10.1 The Evolution of Accruals-Based Research;397
6.4.2;10.2 An Evaluation of the Jones Model;415
6.5;11 Modifications to the Jones Model and Alternative Methodologies;441
6.5.1;11.1 Improved Jones Models;441
6.5.2;11.2 Alternative Methodologies for Detecting Earnings Management;457
7;Summary and Postscript;465
7.1;Overview of the Book;465
7.2;Lessons;467
7.3;Related Research;468
8;Bibliography;470
9;Index;583