501
Views
2
CrossRef citations to date
0
Altmetric
Original Articles

Interactive Reporting Bias Surrounding CEO TurnoverFootnote

Pages 239-282 | Received 25 Apr 2013, Accepted 07 Jan 2016, Published online: 11 Mar 2016

References

  • Abarbanell, J., & Lehavy, R. (2003). Can stock recommendations predict earnings management and analysts' earnings forecast errors? Journal of Accounting Research, 41, 1–31. doi: 10.1111/1475-679X.00093
  • Aggarwal, R. (2008). Executive compensation and incentives. In E. Eckbo (Ed.), Handbook of empirical corporate finance (Vol. 2, pp. 497–538). Elsevier: Amsterdam.
  • Ali, A., & Zhang, W. (2012). CEO tenure and earnings management. Working Paper, University of Texas at Dallas.
  • Arya, A., Glover, J., & Sunder, S. (1998). Earnings management and revelation principle. Review of Accounting Studies, 3, 7–34. doi: 10.1023/A:1009631714430
  • Bagnoli, M., & Watts, S. G. (2010). Oligopoly, disclosure, and earnings management. Accounting Review, 85, 1191–1214. doi: 10.2308/accr.2010.85.4.1191
  • Beneish, M. D. (1999). Incentives and penalties related to earnings overstatements that violate GAAP. Accounting Review, 74, 425–457. doi: 10.2308/accr.1999.74.4.425
  • Bergstresser, D., & Philippon, T. (2006). CEO incentives and earnings management. Journal of Financial Economics, 80, 511–529. doi: 10.1016/j.jfineco.2004.10.011
  • Beyer, A. (2008). Financial analysts' forecast revisions and managers' reporting behavior. Journal of Accounting and Economics, 46, 334–348. doi: 10.1016/j.jacceco.2008.08.003
  • Beyer, A. (2009). Capital market prices, management forecasts, and earnings management. Accounting Review, 84, 1713–1747. doi: 10.2308/accr.2009.84.6.1713
  • Bushman, R. M., & Indjejikian, R. J. (1993). Accounting income, stock price, and managerial compensation. Journal of Accounting and Economics, 16, 3–23. doi: 10.1016/0165-4101(93)90003-X
  • Choi, J.-S., Kwak, Y.-M., & Choe, C. (2014). Earnings management surrounding CEO turnover: Evidence from Korea. Abacus, 50, 25–55. doi: 10.1111/abac.12021
  • Cohen, D. A., Dey, A., Lys, T. Z., & Sunder, S. V. (2007). Earnings announcement premia and the limits to arbitrage. Journal of Accounting and Economics, 43, 153–180. doi: 10.1016/j.jacceco.2007.01.008
  • Darrough, M. (1993). Disclosure policy and competition: Cournot vs. Bertrand. Accounting Review, 68, 534–561.
  • DeAngelo, L. E. (1988). Managerial competition, information costs, and corporate governance: The use of accounting performance measures in proxy contests. Journal of Accounting and Economics, 10, 3–36. doi: 10.1016/0165-4101(88)90021-3
  • Dechow, P. M., & Sloan, R. G. (1991). Executive incentive and the horizon problem: An empirical investigation. Journal of Accounting and Economics, 14, 51–89. doi: 10.1016/0167-7187(91)90058-S
  • DeFond, M., & Jiambalvo, J. (1991). Incidence and circumstances of accounting errors. Accounting Review, 66, 643–655.
  • DeGroot, M. (1970). Optimal statistical decision. Hoboken, NJ: John Wiley & Sons.
  • Demski, J. S., Frimor, H., & Sappington, D. E. M. (2004). Efficient manipulation in a repeated setting. Journal of Accounting Research, 42, 31–49. doi: 10.1111/j.1475-679X.2004.00128.x
  • Desai, H., Hogan, C. E., & Wilkins, M. S. (2006). The reputational penalty for aggressive accounting: Earnings restatements and management turnover. Accounting Review, 81, 83–112. doi: 10.2308/accr.2006.81.1.83
  • Dye, R. A., & Sridhar, S. S. (2004). Reliability-relevance trade-offs and the efficiency of aggregation. Journal of Accounting Research, 42, 51–88. doi: 10.1111/j.1475-679X.2004.00129.x
  • Evans III J. H., & Sridhar, S. S. (1996). Multiple control systems, accrual accounting, and earnings management. Journal of Accounting Research, 34, 45–65. doi: 10.2307/2491331
  • Fee, C., Hadlock, C., & Pierce, J. (2011). Managers who lack style: Evidence from exogenous CEO changes. Working Paper, Michigan State University.
  • Fischer, P. E., & Verrecchia, R. E. (2000). Reporting bias. Accounting Review, 75, 229–245. doi: 10.2308/accr.2000.75.2.229
  • Frazzini, A., & Lamont, O. (2007). The earnings announcement premia and trading volume. Working Paper, National Bureau of Economic Research.
  • Goldman, E., & Slezak, S. L. (2006). An equilibrium model of incentive contracts in the presence of information manipulation. Journal of Financial Economics, 80, 603–626. doi: 10.1016/j.jfineco.2005.05.007
  • Guan, L., Wright, C. J., & Leikam, S. L. (2005). Earnings management and forced CEO dismissal. Advances in Accounting, 21, 61–81. doi: 10.1016/S0882-6110(05)21003-9
  • Guttman, I., Kadan, O., & Kandel, E. (2006). A rational expectations theory of kinks in financial reporting. Accounting Review, 81, 811–848. doi: 10.2308/accr.2006.81.4.811
  • Hazarika, S., Karpoff, J. M., & Nahata, R. (2012). Internal corporate governance, CEO turnover, and earnings management. Journal of Financial Economics, 104, 44–69. doi: 10.1016/j.jfineco.2011.10.011
  • Hennes, K. M., Leone, A. J., & Miller, B. P. (2008). The importance of distinguishing errors from irregularities in restatement research: The case of restatements and CEO/CFO turnover. Accounting Review, 83, 1487–1519. doi: 10.2308/accr.2008.83.6.1487
  • Jorgensen, B., & Kirschenheiter, M. (2012). Interactive discretionary disclosures. Contemporary Accounting Research, 39, 382–397. doi: 10.1111/j.1911-3846.2011.01070.x
  • Kalyta, P. (2009). Accounting discretion, horizon problem, and CEO retirement benefits. Accounting Review, 84, 1153–1573. doi: 10.2308/accr.2009.84.5.1553
  • Kanodia, C., & Mukherji, A. (1996). Real effects of separating investment and operating cash flows. Review of Accounting Studies, 1, 51–71. doi: 10.1007/BF00565412
  • Karpoff, J. M., Lee, D. S., & Martin, G. S. (2008). The consequences to managers for financial misrepresentation. Journal of Financial Economics, 88, 193–215. doi: 10.1016/j.jfineco.2007.06.003
  • Kirschenheiter, M., & Melumad, N. D. (2002). Can big bath and earnings smoothing co-exist as equilibrium financial reporting strategies? Journal of Accounting Research, 40, 761–796. doi: 10.1111/1475-679X.00070
  • Laux, V., & Stocken, P. (2012). Managerial reporting, overoptimism, and litigation risk. Journal of Accounting and Economics, 55, 577–591. doi: 10.1016/j.jacceco.2012.02.001
  • Li, S. (2009). Corporate fraud and costly monitoring: An empirical analysis of a simultaneous system with partial observability. Working Paper, Wilfrid Laurier University.
  • Liang, P. J. (2004). Equilibrium earnings management, incentive contracts, and accounting standards. Contemporary Accounting Research, 21, 685–718. doi: 10.1506/586L-8DKT-3UYL-L9Q4
  • Murphy, K. J., & Zimmerman, J. L. (1993). Financial performance surrounding CEO turnover. Journal of Accounting and Economics, 16, 273–315. doi: 10.1016/0165-4101(93)90014-7
  • Peng, L., & Röell, A. (2014). Managerial incentives and stock price manipulation. Journal of Finance, 69, 487–526. doi: 10.1111/jofi.12129
  • Reitenga, A., & Tearney, M. (2003). Mandatory CEO retirements, discretionary accruals, and corporate governance mechanisms. Journal of Accounting, Auditing and Finance, 18, 255–280.
  • Ronen, J., & Yaari, V. (2010). Earnings management: Emerging insights in theory, practice, and research. New York, NY: Springer.
  • Sankar, M. R., & Subramanyam, K. R. (2001). Reporting discretion and private information communication through earnings. Journal of Accounting Research, 39, 365–386. doi: 10.1111/1475-679X.00017
  • Shibano, T. (1990). Assessing audit risk from errors and irregularities. Journal of Accounting Research, 28, 110–140. doi: 10.2307/2491251
  • Stein, J. C. (1989). Efficient capital market, inefficient firm: A model of myopic corporate behavior. Quarterly Journal of Economics, 104, 655–669. doi: 10.2307/2937861
  • Suijs, J., & Wielhouwer, J. L. (2014). Disclosure regulation in duopoly markets: Proprietary costs and social welfare. European Accounting Review, 23, 227–255. doi: 10.1080/09638180.2013.835245
  • Sunder, S. (2002). Knowing what others know: Common knowledge, accounting, and capital markets. Accounting Horizons, 16, 305–318. doi: 10.2308/acch.2002.16.4.305
  • Trueman, B. (1997). Managerial disclosures and shareholder litigation. Review of Accounting Studies, 2, 181–199. doi: 10.1023/A:1018303309137
  • Verrecchia, R. E. (1983). Discretionary disclosure. Journal of Accounting and Economics, 5, 179–194. doi: 10.1016/0165-4101(83)90011-3

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.