Manipulação para Evitar Perdas: o Impacto do Conservantismo
AbstractIn this paper I analyze the interaction between firms’ earnings management behavior and conservatism. I predict that firms having conservatism-related bad news in the period have more pervasive earnings management than firms having good news. Departing from Burgstahler and Dichev (1997) methodology to detect earnings management, and taking the sign of market returns as a proxy for conservatism effects, I find empirical evidence that supports the prediction of an interaction between firms’ earnings management behavior and conservatism. The evidence is thus consistent with the discontinuities around zero in the earnings distributions being driven, at least partly, by firms’ earnings management behavior, and is robust to controlling for other effects mentioned in the literature as potential determinants of such discontinuities.
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Bibliographic InfoPaper provided by Universidade do Porto, Faculdade de Economia do Porto in its series CEF.UP Working Papers with number 0605.
Length: 26 pages
Date of creation: May 2006
Date of revision:
Earnings management; conservatism; earnings distribution discontinuities.;
Find related papers by JEL classification:
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
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- José António Moreira, 2006. "Are Financing Needs a Constraint to Earnings Management? Evidence for Private Portuguese Firms," CEF.UP Working Papers 0610, Universidade do Porto, Faculdade de Economia do Porto.
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