2005
DOI: 10.1111/j.1467-629x.2005.00145.x
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Is ‘benchmark beating’ by Australian firms evidence of earnings management?

Abstract: We investigate the extent to which Australian firms that report small profits and/or small increases in earnings (i.e. benchmark beaters) have done so by the upward manipulation of these earnings. Although evidence of an unusually large number of firms managing to just beat such earnings benchmarks has been interpreted as evidence of earnings management, this approach fails to identify those firms that are the manipulators from those where unbiased earnings fall naturally into the benchmark beating group. Our … Show more

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Cited by 65 publications
(97 citation statements)
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“…But Holland and Ramsay (2003) did not examine whether managers manage earnings to achieve those benchmarks. Coulton, Taylor, & Taylor (2005) tested that premise but failed to discover any evidence of earnings management. They suggested, therefore, that discontinuity around zero does not necessarily indicate earnings management designed to meet or beat earnings targets.…”
Section: Introductionmentioning
confidence: 95%
“…But Holland and Ramsay (2003) did not examine whether managers manage earnings to achieve those benchmarks. Coulton, Taylor, & Taylor (2005) tested that premise but failed to discover any evidence of earnings management. They suggested, therefore, that discontinuity around zero does not necessarily indicate earnings management designed to meet or beat earnings targets.…”
Section: Introductionmentioning
confidence: 95%
“…La doctrina contable considera que el uso de los ajustes por devengo es uno de los instrumentos preferidos por los administradores para conseguir determinados efectos en la cifra de resultados debido su baja visibilidad de cara a los supervisores de la información financiera y demás usuarios de la información financiera. Estudios que utilizan los ajustes por devengo para demostrar la gestión del resultados son, por ejemplo, Burgstahler y Dichev (1997), Dechow et al (2003), Coulton et al (2005) Aunque la metodología de los ajustes por devengo ha experimentado un amplio desarrollo en la última década, la mayor parte de los investigadores utiliza modelos seminales o de corte clásico en la contrastación de sus hipótesis. En este trabajo se han utilizado tres modelos de ajustes por devengo: Jones original (1991), Jones modificado (Dechow et al, 1995) y el modelo de Kothari et al (2005), ampliamente utilizados en investigaciones previas.…”
Section: Revisión De La Literaturaunclassified
“…La misma evidencia obtienen Dechow et al (2003) y Coulton et al (2005). Los resultados encontrados sugieren que las medidas de ajustes discrecionales deben tomarse con cierta precaución.…”
Section: Análisis De Los Ajustes Por Devengo Discrecionales (Add) Niunclassified
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