IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Complementary association between real activities and accruals-based manipulation in earnings reporting

  • Ching-Lung Chen
  • Su-Hui Huang
  • Hung-Shu Fan
Registered author(s):

    Extant studies focus on examining the developed capital markets and reveal mixed results for the association between real activities versus accruals-based earnings management. This study establishes a set of simultaneous equations that captures managers’ behaviors to boost (or suppress) earnings performance to examine whether real activities and discretionary accruals play mutually complement roles in earnings reporting in Taiwan. The two-stage least squares regressions results reveal that the realactivities manipulation comprehensive measure is positively associated with discretionary accruals and supports the complement hypothesis. It suggests that managers jointly and simultaneously use these two tools in strategic earnings reporting decisions.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://hdl.handle.net/10.1080/17487870.2012.667965
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

    Volume (Year): 15 (2012)
    Issue (Month): 2 (June)
    Pages: 93-108

    as
    in new window

    Handle: RePEc:taf:jpolrf:v:15:y:2012:i:2:p:93-108
    Contact details of provider: Web page: http://www.tandfonline.com/GPRE19

    Order Information: Web: http://www.tandfonline.com/pricing/journal/GPRE19

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:taf:jpolrf:v:15:y:2012:i:2:p:93-108. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.