Earnings Management: The Effect of Ex Ante Earnings Expectations

Journal of Accounting, Auditing & Finance

Volumn 15, Issue 4, 2000, Pages 371-392

  Payne, Jeff L ^a   Robb, Sean W G ^b  

^a UNIVERSITY OF OKLAHOMA   (United States)

^b UNIVERSITY OF TORONTO   (Canada)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84990385967     PISSN: 0148558X     EISSN: None     Source Type: Journal    
DOI: 10.1177/0148558X0001500401     Document Type: Review

References (58)

1. Abarbanell J. S. Lanen W. N. Verrecchia R. E. 1995. “Analysts’ Forecasts as Proxies for Investor Beliefs in Empirical Research”. Journal of Accounting and Economics, 20 (January): 31–60.
2. Ajinkya B. Atiase R. Gift M. 1991. “Volume of Trading and the Dispersion in Financial Analysts’ Earnings Forecasts”. The Accounting Review, 66 (April): 389–401.
3. Ajinkya B. Gift M. 1984. “Corporate Managers Earnings Forecast and Symmetrical Adjustments of Market Expectations”. Journal of Accounting Research, 22 (Autumn): 425–444.
4. Atiase R. K. Bamber L. S. 1994. “Trading Volume Reactions to Annual Accounting Earnings Announcements: The Incremental Role of Predisclosure Information Asymmetry”. Journal of Accounting & Economics, 17 (May): 309–330.
5. Baginski S. P. Hassell J. M. 1997. “Determinants of Management Forecast Precision”. The Accounting Review, 72 (April): 303–312.
6. Barron O. E. Stuerke P. S. 1998. “Dispersion in Analysts’ Earnings Forecasts as a Measure of Uncertainty”. Journal of Accounting, Auditing & Finance, 13 (Summer): 245–270.
7. Becker C. L. DeFond M. L. Jiambalvo J. Subramanyam K. R. 1998. “The Effect of Audit Quality on Earnings Management”. Contemporary Accounting Research, 15 (Spring): 1–24.
8. Besley D. A. Kuh E. Welsch R. E. 1980. Regression Diagnostics. New York: John Wiley & Sons.
9. Brown L. D. 1993. “Earnings Forecasting Research: Its Implications for Capital Markets Research”. International Journal of Forecasting, 9 (November): 295–320.
10. Brown L. D. Han J. C. 1992. “The Impact of Annual Earnings Announcements on Convergence of Beliefs”. The Accounting Review, 67 (October): 862–876.
11. Burgstahler D. Dichev I. 1997. “Earnings Management to Avoid Earnings Decreases and Losses”. Journal of Accounting and Economics, 24 (January): 99–126.
12. Chaney P. K. Jeter D. C. 1992. “The Effect of Size on the Magnitude of Long-Window Earnings Response Coefficients”. Contemporary Accounting Research, 8 (Spring): 540–562.
13. Comiskey E. Walking R. Weeks M. 1987. “Dispersion of Expectations and Trading Volume”. Journal of Business, Finance and Accounting, 14 (Summer): 229–239.
14. DeAngelo H. DeAngelo L. Skinner D.J., 1994. “Accounting Choice in Troubled Companies”. Journal of Accounting and Economics, 17 (January): 113–43.
15. Dechow P. M. 1994. “Accounting Earnings and Cash Flows as Measures of Firm Performance: The Role of Accounting Accruals”. Journal of Accounting & Economics, 18 (July): 3–43.
16. Dechow P.M. Sabino J. Sloan R. G. 1997. “Implications of Nondiscretionary Accruals for Earnings Management and Market-Based Research.” Working paper. University of Pennsylvania.
17. Dechow P. M. Sloan R. G. Sweeney A. P. 1995. “Detecting Earnings Management”. The Accounting Review, 70 (April): 193–226.
18. DeFond M. Jiambalvo J. 1994. “Debt Covenant Violation and Manipulation of Accruals”. Journal of Accounting and Economics, 17 (January): 145–176.
19. DeFond M. Park C. 1997. “Smoothing Income in Anticipation of Future Earnings”. Journal of Accounting and Economics, 23 (September): 115–139.
20. DeFond M. Subramanyam K. R. 1998. “Auditor Changes and Discretionary Accruals”. Journal of Accounting and Economics, 25 (January): 35–67.
21. Dowen R. J. Bauman W. S. 1991. “Revisions in Corporate Earnings Forecast and Common Stock Returns”. Financial Analysts Journal, 47 (March–April): 86–90.
22. Elliott J. Philbrick D. 1990. “Accounting Changes and Earnings Predictability”. The Accounting Review, 65 (January): 157–174.
23. Fama E. F. 1980. “Agency Problems and the Theory of the Firm”. Journal of Political Economy, 88 (April): 288–307.
24. Fox J. 1997. “Learn to Play the Earnings Game (and Wall Street Will Love You)”. Fortune, 135 (March): 76–80.
25. Francis J. Philbrick D. Schipper K. 1995. “Earnings Surprises and Litigation Risk.” Working paper. University of Chicago.
26. Gaver J. J. Gaver K. M. Austin J. R. 1995. “Additional Evidence on Bonus Plans and Income Management”. Journal of Accounting and Economics, 19 (February): 3–28.
27. Guay W. R. Kothari S. P. Watts R. L. 1996. “A Market-Based Evaluation of Discretionary Accrual Models”. Journal of Accounting Research, 34 (Supplement): 83–105.
28. Healy P. M. 1985. “The Effect of Bonus Schemes on Accounting Decisions”. Journal of Accounting and Economics, 7 (April): 85–107.
29. Healy P. M. Palepu K. G. 1990. “The Effectiveness of Accounting-Based Dividend Constraints”. Journal of Accounting and Economics, 13 (January): 97–123.
30. Hirst D. E. Koonce L. Simko P. J. 1995. “Investor Reactions to Financial Analysts’ Research Reports”. Journal of Accounting Research, 33 (Autumn): 335–351.
31. Imhoff E. Lipe R. Wright D. 1993. “The Effects of Recognition Versus Disclosure on Shareholder Risk and Executive Compensation”. Journal of Accounting, Auditing & Finance, 8 (Fall): 335–368.
32. Imhoff E. Lobo G. 1992. “The Effect of Ex Ante Earnings Uncertainty on Earnings Response Coefficients”. The Accounting Review, 67 (April): 427–440.
33. Ip Greg. 1997. “Investors Now Search for Predictable Earnings”. Wall Street Journal (March 31): C1, C2.
34. Jones J. 1991. “Earnings Management during Import Relief Investigations”. Journal of Accounting Research, 29 (Autumn): 193–228.
35. Kasznik R. 1999. “On the Association between Voluntary Disclosure and Earnings Management”. Journal of Accounting Research, 37 (Spring): 57–81.
36. King R. Pownall G. Waymire G. 1990. “Expectations Adjustment via Timely Management Forecasts: Review, Synthesis, and Suggestions for Future Research”. Journal of Accounting Literature, 9: 113–144.
37. Lees F. A. 1981. “Public Disclosure of Corporate Earnings Forecasts.” New York: Conference Board.
38. Levitt A. L. Remarks by Chairman Arthur Levitt Securities and Exchange Commission, The “Numbers Game,” NYU Center for Law and Business, New York, 28 September, 1998. http://www.sec.gov/news/speeches/spch220.txt.
39. Lim S. C. Lustgarten S. 1998. “Testing for Income Smoothing Using the Backing Out Method.” Working paper. Baruch College.
40. Lipe R. 1990. “The Relation between Stock Returns and Accounting Earnings Given Alternative Information”. The Accounting Review, 65 (January): 49–71.
41. Lobo G. J. Mahmoud A. W. 1989. “Relationship between Differential Amounts of Prior Information and Security Return Variability”. Journal of Accounting Research, 27 (Spring): 116–130.
42. Matsumoto D. A. 1999. “Management's Incentives to Guide Analysts’ Forecasts.” Working paper. Harvard University.
43. McNichols M. Wilson P. 1988. “Evidence of Earnings Management from the Provision for Bad Debts”. Journal of Accounting Research, 26 (Supplement): 1–31.
44. Neter J. Wasserman W. Kutner M. H. 1985. Applied Statistical Models. Homewood, Ill: Richard D. Irwin.
45. O'Brien P. 1988. “Analysts’ Forecast as Earnings Expectation”. Journal of Accounting and Economics, 10 (January): 53–74.
46. Perry S. E. Williams T. H. 1994. “Earnings Management Preceding Management Buyout Offers”. Journal of Accounting & Economics, 18 (September): 157–180.
47. Sansing R. C. 1992. “Accounting and the Credibility of Management Forecasts”. Contemporary Accounting Research, 9 (Fall): 33–45.
48. Shivakumar L. 1996. “Estimating Abnormal Accruals for Detection of Earnings Management.” IFA working paper 241–1996. London Business School.
49. Skinner D. J. 1994. “Why Firms Voluntarily Disclose Bad News”. Journal of Accounting Research, 32 (Spring): 38–60.
50. Subramanyam K. R. 1996. “The Pricing of Discretionary Accruals”. Journal of Accounting and Economics, 22 (August–December): 249–281.
51. Sweeney A. 1994. “Debt Covenant Violations and Managers’ Responses”. Journal of Accounting and Economics, 17 (May): 281–308.
52. Trueman B. 1986. “Why Do Managers Voluntarily Release Earnings Forecasts?” Journal of Accounting and Economics, 9: 53–71.
53. Turner L. E. 1998. SEC Chief Accountant's October 1998 Letter to AICPA on Auditing and Financial Reporting Concerns. 9 October, www.aicpa.org.
54. Wall Street Journal. 1997. (March 31):C1, C2.
55. Walther B. R. Willis R. H. 1999. “Are Earnings Surprises Costly?” Working paper. Northwestern University and Duke University.
56. Watts R. L. Zimmerman J. L. 1986. Positive Accounting Theory. Englewood Cliffs, N.J.: Prentice-Hall.
57. White H. 1980. “A Heteroscedasticity-Consistent Covariance Matrix and a Direct Test of Heteroscedasticity”. Econometrica, 48: 817–838.
58. Wu Y. W. 1997. “Management Buyouts and Earnings Management”. Journal of Accounting, Auditing & Finance, 12 (Fall): 373–389.