Journal ArticleDOI
Debt covenant violation and manipulation of accruals
Mark L. DeFond,James Jiambalvo +1 more
TLDR
In this article, the authors examined the abnormal accruals of a sample of 94 firms that reported debt covenant violations in annual reports and found that debt covenants influence accounting choices in the year preceding and the year of violation.About:
This article is published in Journal of Accounting and Economics.The article was published on 1994-01-01. It has received 2850 citations till now. The article focuses on the topics: Earnings management & Accrual.read more
Citations
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Detecting Earnings Management
TL;DR: In this paper, the authors evaluate alternative models for detecting earnings management by comparing the specification and power of commonly used test statistics across the measures of discretionary accruals generated by each model.
Journal ArticleDOI
Performance matched discretionary accrual measures
TL;DR: In this article, the authors examine the specification and power of tests based on performance-matched discretionary accruals, and make comparisons with tests using traditional discretionary accumrual measures (e.g., Jones and modified-Jones models).
Journal Article
Detecting earnings management
TL;DR: In this paper, the authors evaluate alternative accrual-based models for detecting earnings management and find that they appear well specified when applied to a random sample of firm-years.
Journal ArticleDOI
Earnings management to avoid earnings decreases and losses
David Burgstahler,Ilia D. Dichev +1 more
TL;DR: In this article, the authors provide evidence that firms manage reported earnings to avoid earnings decreases and losses and find evidence that two components of earnings, cash flow from operations and changes in working capital, are used to achieve increases in earnings.
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Audit committee, board of director characteristics, and earnings management
TL;DR: In this paper, the authors examined whether audit committee and board characteristics are related to earnings management by the firm and found a negative relation between audit committee independence and abnormal accruals.
References
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Journal ArticleDOI
Earnings Management During Import Relief Investigations
TL;DR: In this article, the authors test whether firms that would benefit from import relief attempt to decrease earnings through earnings management during import relief investigations by the United States International Trade Commission (ITC).
Book
Positive Accounting Theory
TL;DR: In this article, the authors review the theory and methodology underlying the economics-based empirical literature in accounting and discuss the role of theory in empirical work and the extent to which the theories are consistent with those studies' evidence.
Journal ArticleDOI
Elements of Econometrics.
Ian Domowitz,Jan Kmenta +1 more
TL;DR: The Elements of Econometrics as mentioned in this paper is a textbook for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in economics.
Book
The effects of bonus schemes on accounting decisions
TL;DR: The authors analyzed the format of typical bonus contracts, providing a more complete characterization of their accounting incentive effects than earlier studies, and found that accrual policies of managers are related to income-reporting incentives of their bonus contracts.
Book
Elements of econometrics
TL;DR: The emphasis is on simplification whenever possible, assuming the readers know college algebra and basic calculus, and Jan Kmenta explains all methods within the simplest framework, and generalizations are presented as logical extensions of simple cases.