Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/springer-journals/earnings-management-and-the-revelation-principle-HYEVInnzA0
References (67)
-
Gerald Fischer (1961)
Bank holding companiesJournal of Finance, 17
-
R. Myerson (1979)
Incentive Compatibility and the Bargaining ProblemEconometrica, 47
-
It is important that taking a higher productive act increases the manager's expertise in predicting period-two earnings, not that the ability to predict is perfect -
Stanley Baiman (1975)
The Evaluation and Choice of Internal Information Systems Within a Multiperson WorldJournal of Accounting Research, 13
-
T. Sanders, H. Hatfield, Underhill Moore (1938)
A statement of accounting principles -
Hepworth (1953) also discusses the role of earnings management in manipulating perceptions, but for the purpose of avoiding irrational waves of optimism or pessimism -
Sylvie Rouchon (1994)
The income smoothingResearch Papers in Economics
-
(1996)
Earnings Management: Not for Managers but for Investors Working paper -
A. Sweeney (1994)
Debt-covenant violations and managers' accounting responsesJournal of Accounting and Economics, 17
-
R. Antle, J. Demski (1988)
The Controllability Principle in Responsibility AccountingThe Accounting Review, 63
-
Ingrid Torsay, J. Heher (1997)
Introduction to financial accounting -
Nahum Melumad, Dilip Mookherjee, S. Reichelstein (1992)
A theory of responsibility centersJournal of Accounting and Economics, 15
-
O. Hart, J. Tirole (1988)
Contract Renegotiation and Coasian DynamicsThe Review of Economic Studies, 55
-
Colin Camerer, G. Loewenstein, Martin Weber (1989)
The Curse of Knowledge in Economic Settings: An Experimental AnalysisJournal of Political Economy, 97
-
(1966)
Accounting Measurements and Normal Growth of the Firm -
A. Arya, J. Glover, K. Sivaramakrishnan (1997)
The Interaction Between Decision and Control Problems and the Value of InformationThe Accounting Review, 72
-
(1997)
Grade A Boards -
Robert Jaedicke, 井尻 雄士, Oswald Nielsen (1986)
Research in accounting measurement -
J. Evans, S. Sridhar (1996)
Multiple control systems, accrual accounting, and earnings managementJournal of Accounting Research, 34
-
Nahum Melumad, Dilip Mookherjee, S. Reichelstein (1997)
Contract Complexity, Incentives, and the Value of DelegationJournal of Economics and Management Strategy, 6
-
D. Fudenberg, J. Tirole (1990)
Moral Hazard and Renegotiation in Agency ContractsEconometrica, 58
-
(1972)
The Accounting Review -
M. Tiku (1986)
Robust Inference -
Jerry Green, J. Laffont (1986)
Partially Verifiable Information and Mechanism DesignThe Review of Economic Studies, 53
-
Thomas Lys, K. Sivaramakrishnan (1988)
Earnings Expectations And Capital Restructuring - The Case Of Equity-For-Debt SwapsJournal of Accounting Research, 26
-
B. Lipman, D. Seppi (1995)
Robust Inference in Communication Games with Partial ProvabilityJournal of Economic Theory, 66
-
Paul Milgrom, John Roberts (1992)
Economics, Organization and Management -
J. Ronen, S. Sadan (1981)
Smoothing income numbers : objectives, means, and implications -
(1953)
Smoothing Periodic Income -
Brett Trueman, S. Titman (1988)
An Explanation for Accounting Income SmoothingJournal of Accounting Research, 26
-
O. Hart, John. Moore (1988)
Incomplete Contracts and RenegotiationEconometrica, 56
-
Patricia Dechow, Richard Sloan, A. Sweeney (1994)
DETECTING EARNINGS MANAGEMENTAccounting review: A quarterly journal of the American Accounting Association, 70
-
P. Harris (1999)
American Accounting AssociationElectronic Resources Review, 3
-
(1986)
Accounting Numbers as Market Valuation Substitutes: A Study of Management Buyouts of Public Stockholders -
Manipulating Profits : How it ’ s Done -
S. Lim, S. Sunder (1991)
Efficiency of Asset Valuation Rules Under Price Movement and Measurement ErrorsThe Accounting Review, 66
-
W. Cole (1908)
Accounts: Their Construction and Interpretation -
J. Crémer (1995)
Arm's Length RelationshipsQuarterly Journal of Economics, 110
-
B. Villadsen, Richard Boylan (1995)
An Algorithmic Approach to Contracting in an Infinite Agency Model -
S. Sunder (1996)
Theory of Accounting and Control -
(1994)
Current Draft -
M. McNichols, G. Wilson (1988)
Evidence of Earnings Management from the Provision for Bad DebtsJournal of Accounting Research, 26
-
(1996)
Sears's Credit-Card Reserves May Have Propped Up Earnings -
(1987)
Strassli Holding, AG -
H. DeAngelo, L. Deangelo, Douglas Skinner (1994)
Accounting choice in troubled companiesJournal of Accounting and Economics, 17
-
(1985)
Effect of Bonus Schemes on Accounting Decisions -
R. Copeland (1968)
Income SmoothingJournal of Accounting Research, 6
-
D. Collins, L. Deangelo (1990)
Accounting information and corporate governance: Market and analyst reactions to earnings of firms engaged in proxy contestsJournal of Accounting and Economics, 13
-
G. Shillinglaw (1987)
Cases in International Accounting -
B. Cushing (1969)
An Empirical Study of Changes in Accounting PolicyJournal of Accounting Research, 7
-
R. Dye (1988)
EARNINGS MANAGEMENT IN AN OVERLAPPING GENERATIONS MODELJournal of Accounting Research, 26
-
John Elliott, W. Shaw (1988)
Write-Offs as Accounting Procedures to Manage PerceptionsJournal of Accounting Research, 26
-
D. Fudenberg, J. Tirole (1995)
A Theory of Income and Dividend Smoothing Based on Incumbency RentsJournal of Political Economy, 103
-
(1998)
Before Chrysler, Daimler Was a Soap Opera -
E. Bartov (1993)
The Timing of Asset Sales and Earnings ManipulationThe Accounting Review, 68
-
Raffi Indjejikian, D. Nanda (1998)
Dynamic Incentives and Responsibility AccountingUniversity of Miami Herbert Business School Research Paper Series
-
J. Jones (1991)
Earnings Management During Import Relief InvestigationsJournal of Accounting Research, 29
-
(1938)
A related point is that conservatism itself may be valued: conservative reporting choices may signal that management has a fundamentally conservative disposition -
Mark Defond, Chul Park (1997)
Smoothing income in anticipation of future earningsJournal of Accounting and Economics, 23
-
S. Liberty, J. Zimmerman (1986)
Labor Union Contract Negotiations and Accounting ChoicesAccounting Review, 61
-
Jonathan Glover, Anil Arya (1997)
The interaction between decision and control problems andAccounting review: A quarterly journal of the American Accounting Association, 72
-
T. Archibald (1967)
The Return to Straight-Line Depreciation: An Analysis of a Change in Accounting MethodJournal of Accounting Research, 5
-
Benjamin Hermalin, M. Katz (1990)
Moral Hazard and Verifiability: The Effects of Renegotiation in AgencyEconometrica, 59
-
(1998)
Performance Smoothing Incentives Working paper -
(1987)
A case that incorporates many of these aspects of earnings management is -
Carolyn Levine (1998)
Conservatism, contracts and information revelation -
Suk Lim, S. Sunder (1990)
ECONOMETRIC EFFICIENCY OF ASSET VALUATION RULES UNDER PRICE MOVEMENT AND MEASUREMENT ERRORS
- Publisher
- Springer Journals
- Copyright
- Copyright © 1998 by Kluwer Academic Publishers
- Subject
- Business and Management; Accounting/Auditing; Corporate Finance; Public Finance
- ISSN
- 1380-6653
- eISSN
- 1573-7136
- DOI
- 10.1023/A:1009631714430
- Publisher site
- See Article on Publisher Site
Abstract
When the Revelation Principle (RP) holds, managing earnings confers no advantage over revelation. We construct an explanation for earnings management that is based on limitations on owners' ability to make commitments (a violation of the RP's assumptions). Traditionally, earnings management is seen as sneaky managers pulling the wool over the eyes of gullible owners by manipulating accruals; our limited commitment story suggests that the owners, too, can benefit from earnings management. We categorize a variety of extant explanations of earnings management, along with our own, according to which of the assumptions of the RP each explanation violates. Plausibility of multiple simultaneous violations of the assumptions, and strategic use of various accounting and real instruments of earnings management, complicate the task of detecting such management in field data.
Journal
Review of Accounting Studies – Springer Journals
Published: Oct 6, 2004