Researchers have used various measures as indications of “earnings quality” including
persistence, accruals, smoothness, timeliness, loss avoidance, investor responsiveness …

Publisher Summary This chapter provides a selective review of recent work in behavioral
finance. Modern finance assumes that the study of substantively rational solutions to …

We survey and interview more than 400 executives to determine the factors that drive
reported earnings and disclosure decisions. We find that managers would rather take …

ABSTRACT I study whether managers use real activities manipulation and accrual-based
earnings management as substitutes in managing earnings. I find that managers trade off …

This paper investigates the hypothesis that CEOs in their final years of office manage
discretionary investment expenditures to improve short-term earnings performance. We …

This paper examines if the stock market prices discretionary accruals. Evidence reveals that,
on average, the market attaches value to discretionary accruals. This evidence is consistent …

This study investigates whether managers who issue annual earnings forecasts manage
reported earnings toward their forecasts, fearing legal actions by investors and loss of …

This study investigates if the use of a Big 6 auditor is increasing in the firm's endogenous
propensity to generate accruals. High‐accrual firms have greater scope for aggressive …

This commentary discusses empirical measures used in academic research to assess
eamings quality and relates these measures both to decision usefulness, from the Financial …

This paper studies accounting choice in 76 NYSE firms with persistent losses and dividend
reductions (40% forced by binding covenants). We find that managers' accounting choices …