Earnings management and antitrust investigations: Political costs over business cycles

Journal of Business Finance and Accounting

Volumn 25, Issue 5-6, 1998, Pages 701-720

  Makar, Stephen D ^a   Alam, Pervaiz ^b  

^a UNIVERSITY OF WISCONSIN OSHKOSH   (United States)

^b KENT STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0012521330     PISSN: 0306686X     EISSN: 14685957     Source Type: Journal    
DOI: 10.1111/1468-5957.00208     Document Type: Article

References (45)

1. Areeda, P. (1974), Antitrust Analysis: Problems, Text, Cases (Little Brown and Company, Boston).
2. -(1988), Antitrust Analysis: Problems, Text, Cases (Little Brown and Company, Boston).
3. -(1994), 'Antitrust Policy in the 1980s', in M. Feldstein (ed.), American Economic Policy in the 1980s (University of Chicago Press, Chicago), pp. 573-600.
4. Baker, J.B. and T.F. Bresnahan (1992), 'Empirical Methods of Identifying and Measuring Market Power', Antitrust Law Journal, Vol. 61, No. 1 (Summer), pp. 3-16.
5. Cahan, S.F. (1992), 'The Effect of Antitrust Investigations on Discretionary Accruals: A Refined Test of the Political-Cost Hypothesis', The Accounting Review, Vol. 67, No. 1 (January), pp. 77-95.
6. -(1993), 'Electric Utility Income in Response to the Breakdown at the Three Mile Island Nuclear Power Plant and Subsequent Political Events', Journal of Accounting and Public Policy, Vol. 12, No. 1 (Spring), pp. 37-63.
7. Chaney, P.K., D.C. Jeter and C.M. Lewis (1995), 'The Use of Accruals in Earnings Management: A Permanent Earnings Hypothesis', Working Paper (Vanderbilt University).
8. Coate, M.B., A.N. Kleit and R. Bustamante (1995), 'Fight, Fold or Settle? Modelling the Reaction to FTC Merger Challenges', Economic inquiry, Vol. 33 (October), pp. 537-51.
9. DeAngelo, L.E. (1986), 'Accounting Numbers as Market Valuation Substitutes: A Study of Management Buyouts of Public Stockholders', The Accounting Review, Vol. 61, No. 3 (July), pp.400-20.
10. DeAngelo, H., L.E. DeAngelo and D.J. Skinner (1994), 'Accounting Choice for Troubled Companies', Journal of Accounting and Economics, Vol. 17, No. 1 (January), pp. 113-43.
11. Dechow, P.M., R.G. Sloan and A.P. Sweeney (1995), 'Detecting Earnings Management', The Accounting Review, Vol. 70, No. 2 (April), pp. 193-225.
12. DeFond, M.L. and J. Jiambalvo (1994), 'Debt Covenant Violation and Manipulation of Accruals', Journal of Accounting and Economics, Vol. 17, No. 1 (January), pp. 145-76.
13. Eckbo, B.E. (1992), 'Mergers and the Value of Antitrust Deterrence', Journal of Finance, Vol. 47, No. 3 (July), pp. 1005-29.
14. - and P. Wier (1985), 'Antimerger Policy under the Hart-Scott-Rodino Act: A Reexamination of the Market Power Hypothesis', Journal of Law and Economics, Vol. 28, No. 1 (April), pp. 119-49.
15. Eisner, M.A. and K.J. Meier (1990), 'Presidential Control Versus Bureaucratic Power: Explaining the Reagan Revolution in Antitrust', American Journal of Political Science, Vol. 34, No. 1 (February), pp. 269-87.
16. Elzinga, K.G. (1989), 'Unmasking Monopoly: Four Types of Economic Evidence', in R.J. Larner and J.W. Meehan, Jr. (eds.), Economics and Antitrust Policy (Quorum Books, Westport, Connecticut), pp. 11-37.
17. Hall, B.H. (1989), The Manufacturing Sector Master File: Documentation (National Bureau of Economic Research, Stanford).
18. Hall, S.C. and W.W. Stammerjohan (1997), 'Damage Awards and Earnings Management in the Oil Industry', The Accounting Review, Vol. 72, No. 1 (January), pp. 47-65.
19. Healy, P.M. (1985), 'The Effect of Bonus Schemes on Accounting Decisions', Journal of Accounting and Economics, Vol. 7, No. 1 (April), pp. 85-107.
20. Holthausen, R.W., D.F. Larcker and R.G. Sloan (1995), 'Annual Bonus Schemes and the Manipulation of Earnings', Journal of Accounting and Economics, Vol. 19, No. 1 (February), pp. 29-74.
21. Jaffe, H.D. (1992), 'Developments in Merger Law and Enforcement in 1990-91', Antitrust Law Journal, Vol. 60, No. 3 (Spring), pp. 667-82.
22. Johnson, R.N. and A.M. Parkman (1991), 'Premerger Notification and the Incentive to Merge and Litigate', The Journal of Law, Economics and Organizations, Vol. 7, No. 1 (Spring), pp. 145-62.
23. Jones, J.J. (1991), 'Earnings Management during Import Relief Investigations', Journal of Accounting Research, Vol. 29, No. 2 (Autumn), pp. 193-228.
24. Kreutzfeldt, R.W. and W.A. Wallace (1986), 'Error Characteristics in Audit Populations: Their Profile and Relationship to Environmental Factors', Auditing: A Journal of Practice & Theory, Vol. 6, No. 1 (Fall), pp. 20-43.
25. Landes, W.M. and R.A. Posner (1981), 'Market Power in Antitrust Cases', Harvard Law Review, Vol. 94, No. 5 (March), pp. 937-96.
26. Larner, R.J. and J.W. Meehan, Jr. (1989), Economics and Antitrust Policy (Quorum Books, Westport, Connecticut).
27. Liberty, S.E. and J.L. Zimmerman (1986), 'Labor Union Contract Negotiations and Accounting Choices', The Accounting Review, Vol. 61, No. 4 (October), pp. 692-712.
28. McNichols, M. and G.P. Wilson (1988), 'Evidence of Earnings Management from the Provision for Bad Debts', Journal of Accounting Research, Vol. 26 (Supplement), pp. 1-31.
29. Moyer, S.E. (1990), 'Capital Adequacy Ratio Regulations and Accounting Choices in Commercial Banks', Journal of Accounting and Economics, Vol. 13, No. 2 (July), pp. 123-54.
30. Muris, T.J. (1989), 'Antitrust's Next Decade', in B. Bock (ed.), Is Antitrust Dead?: A Report from the Conference Board (The Conference Board, New York), pp. 55-8.
31. Peltzman, S. (1976), 'Toward a More General Theory of Regulation', Journal of Law and Economics, Vol. 19, No. 2 (August), pp. 211-40.
32. - (1977), 'The Gains and Losses from Industrial Concentration', Journal of Law and Economics, Vol. 20, No. 2 (October), pp. 229-63.
33. Pfunder, M., D. Plaine and A.M. Whittemore (1972), 'Compliance with Divestiture Orders under Section 7 of the Clayton Act: An Analysis of the Relief Obtained', Antitrust Bulletin, Vol. 17, No. 1 (Spring), pp. 19-180.
34. Pindyck, R.S. and D.L. Rubinfeld (1991), Econometric Models and Economic Forecasts (McGraw-Hill, New York).
35. Posner, R.A. (1970), 'A Statistical Study of Antitrust Enforcement', Journal of Law and Economics, Vol. 13, No. 2 (Autumn), pp. 365-419.
36. Scherer, F.M. (1989), 'Merger Policy in the 1970s and 1980s', in R.J. Larner and J.W. Meehan, Jr. (eds.), Economics and Antitrust Policy (Quorum Books, Westport, Connecticut), pp. 83-101.
37. Snyder, E.A. (1990), 'The Effect of Higher Criminal Penalties on Antitrust Enforcement', Journal of Law and Economics, Vol. 33, No. 2 (October), pp. 439-62.
38. United States Department of Justice (1984), Merger Guidelines (Author, Washington, DC).
39. Watts, R.L. (1994), 'Positive Research in Accounting', Working Paper (University of Rochester).
40. - and J.L. Zimmerman (1978), 'Towards a Positive Theory of the Determination of Accounting Standards', The Accounting Review, Vol. 53, No. 1 (January), pp. 112-34.
41. -(1986), Positive Accounting Theory (Prentice-Hall, Englewood Cliffs, Newjersey).
42. Weiss, L.W. (1974), 'The Concentration-Profits Relationship and Antitrust', in H.J. Goldschmid, H.M. Mann and J.F. Weston (eds.), Industrial Concentration: The .New Learning (Little, Brown and Co., Boston), pp. 184-233.
43. Wier, P. (1983), 'The Costs of Antimerger Lawsuits', Journal of Financial Economics, Vol. 11, No. 1 (April), pp. 207-24.
44. Yandle, B. (1988), 'Antitrust Actions and the Budgeting Process', Public Choice, Vol. 59, No. 3, pp. 263-75.
45. Zmijewski, M.E. and R.L. Hagerman (1981), 'An Income Strategy Approach to the Positive Theory of Accounting Standard Setting/Choice', Journal of Accounting and Economics, Vol. 3, No. 2 (August), pp. 129-49.