Is earnings management sensitive to discount rates?

Jesper Per Alexander Haga, Kim Ittonen, Per Christen Tronnes, Leon Wong

Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

4 Citeringar (Scopus)

Sammanfattning

We argue that managers’ choice to manage earnings depends on the trade-off in the present value of expected future net benefits associated with that choice. Specifically, we examine if discount rates are associated with the likelihood that managers engage in earnings management to meet or beat various earnings targets. We find that discount rates are positively associated with income-increasing earnings management. This means that managers increase both accrual-based and real earnings management when discount rates are higher. However, the economic magnitude of this association is relatively moderate.
OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftJournal of Accounting Literature
Volym41
UtgåvaDecember
Sidor (från-till)75-88
Antal sidor14
ISSN0737-4607
DOI
StatusPublicerad - 2018
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

Nyckelord

  • 512 Företagsekonomi

Fingeravtryck Fördjupa i forskningsämnen för ”Is earnings management sensitive to discount rates?”. Tillsammans bildar de ett unikt fingeravtryck.

Citera det här