The Real and Accrual-based Earnings Management Behaviors: Evidence from the Split Share Structure Reform in China

Kuo, Jing‐Ming; Ning, Lutao; Song, Xiaoqi

doi:10.1016/j.intacc.2014.01.001

Cited by 103 publications

(139 citation statements)

References 76 publications

(157 reference statements)

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“…Using some regression techniques, the study has detected some positive and meaningful relationships between earnings forecast as well as actual earnings and growth domestic product. The results of this study are consistent with findings earlier reported in the literature (Campello et al, 2010;Kuo et al, 2014).…”

Section: Resultssupporting

confidence: 94%

“…Other literature report that earnings forecasts assist us to cut through the fog of economic uncertainty and are encouraged to help users specifically during such periods (Anilowski et al, 2010). Kuo et al (2014) studied the earnings management activities in Chinese listed companies and the effect of the split share structure reform (SSSREF). They explained that Chinese listed companies represented a long-term positive relationship between real and accrual-based earnings management activities.…”

Section: Introductionmentioning

confidence: 99%

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The impact of economic fluctuations on earnings forecast

Molodpoor¹,

Darabi²

2015

10.5267/j.msl

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Section: Resultssupporting

confidence: 94%

Section: Introductionmentioning

confidence: 99%

The impact of economic fluctuations on earnings forecast

Molodpoor¹,

Darabi²

2015

10.5267/j.msl

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“…For the author, decisions based on operating activities aff ect company cash fl ow and can also aff ect discretionary accruals. Along this same line of thinking, Kuo, Ning, and Song (2014) argue that management based on operating activities is related to governance mechanisms, in which strong and eff ective governance tends to increase investor protection and the quality of fi nancial information, intensifying control in the capital market.…”

Section: Earnings Managementmentioning

confidence: 99%

Influence of board interlocking on earnings management

Cunha

Piccoli

2017

Rev. contab. finanç.

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The participation of directors on more than one board is called "board interlocking". This phenomenon contributes to the spread of management and governance practices, through directors sharing their knowledge and experiences on other boards. Thus, directors could "carry" the earnings management practices present in one company into another in which they sit on the board. It is assumed that the greater directors' direct or indirect connections on boards, the greater the sharing of information, especially information that can be reflected in company earnings quality. In light of the above, the aim of this study is to verify the influence of board interlocking on earnings management in companies listed on the São Paulo Stock, Commodities, and Futures Exchange (BM&FBovespa). The study is characterized as descriptive, quantitative, and documentary, and uses a sample of companies listed on the BM&FBOVESPA between 2011 and 2013. For earnings management, the model from Kang and Sivaramakrishnan (1995) was used, while for interlocking, degree centrality measures were used for direct board member connections, and intermediation centrality for indirect connections. The results indicate that earnings management is influenced by the interlocking of board members. It is concluded that the greater the degree centrality, the greater positive earnings management is, and that variations in positive and negative accruals are influenced by board member intermediation. The results reinforce the idea that earnings management behavior can be transferred between companies by the directors that make up their boards.

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“…Thus, a new stream of research examined REM and AEM at the same time. These studies have shown evidence for the trade-off between the two earnings management according to, for example, the Sarbanes-Oxley Act (SOX) adoption (Cohen et al 2008), the seasoned equity offering (SEO) (Cohen and Zarowin 2010), the overvaluation (Badertscher 2011), their relative costliness (Zang 2012), the split share structure reform (Kuo et al 2014). Regarding the context of the mandatory IFRS adoption, the relation between REM and AEM was not well examined until recent years.…”

Section: Introductionmentioning

confidence: 99%

The interaction between real and accrual-based earnings management: analysis based on the mandatory IFRS adoption

Sellami

2016

IJAES

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The main purpose of this paper is to examine the relation between real and accrual-based earnings management after the mandatory IFRS adoption. I focus on a sample of 124 firms drawn from the 250 French-listed companies during the period from 1999 to 2011. Empirical results indicate that French firms use real activities manipulation and discretionary accruals as complementary tools to smooth earnings. Finally, unlike previous studies, I don't find evidence of the sequential nature between the two earnings management strategies.

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The Real and Accrual-based Earnings Management Behaviors: Evidence from the Split Share Structure Reform in China

Cited by 103 publications

References 76 publications

The impact of economic fluctuations on earnings forecast

The impact of economic fluctuations on earnings forecast

Influence of board interlocking on earnings management

The interaction between real and accrual-based earnings management: analysis based on the mandatory IFRS adoption

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