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Studying Unmanaged Earnings Distributions
[L'étude des distributions de résultats non manipulés]

Author

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  • Olivier Vidal

    (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université)

Abstract

This article draws on an experiment to confirm the assumption underlying studies of earnings management to avoid reporting losses: distributions of unmanaged reported earnings should be smooth in appearance. Three simulations provide unmanaged earnings distributions which suggest that although firms have an incentive to manage earnings upwards to avoid reporting a loss, there is also an incentive to manage earnings downwards to avoid reporting earnings that are too high..

Suggested Citation

  • Olivier Vidal, 2016. "Studying Unmanaged Earnings Distributions [L'étude des distributions de résultats non manipulés]," Post-Print hal-01902456, HAL.
    • Handle: RePEc:hal:journl:hal-01902456
    Note: View the original document on HAL open archive server: https://hal.science/hal-01902456
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    References listed on IDEAS

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