Access the full text.
Sign up today, get DeepDyve free for 14 days.
J. Graham, Campbell Harvey, Shivaram Rajgopal (2004)
The Economic Implications of Corporate Financial ReportingCorporate Finance: Valuation
(1999)
Ho-hum, Another Earnings Surprise.
Patricia Dechow, Scott Richardson, İrem Tuna (2003)
Why Are Earnings Kinky? An Examination of the Earnings Management ExplanationReview of Accounting Studies, 8
Debra Jeter, Lakshmanan Shivakumar (1999)
CROSS-SECTIONAL ESTIMATION OF ABNORMAL ACCRUALS USING QUARTERLY AND ANNUAL DATA: Effectiveness in Detecting Event-Specific Earnings ManagementAccounting and Business Research, 29
L. Brown, H. Higgins (2005)
Managers’ forecast guidance of analysts: International evidenceJournal of Accounting and Public Policy, 24
Brown Brown, Caylor Caylor (2005)
A Temporal Analysis of Quarterly Earnings Thresholds: Propensities and Valuation ConsequencesThe Accounting Review, 80
Donna Philbrick, W. Ricks (1991)
Using Value Line And Ibes Analyst Forecasts In Accounting ResearchJournal of Accounting Research, 29
(2002)
Does Meeting Earnings Expectations Matter? Evidence from Analyst Forecast Revisions and Share Prices.
Ashbaugh‐Skaife Ashbaugh‐Skaife, Collins Collins, LaFond LaFond (2006)
The Effects of Corporate Governance on Firms' Credit RatingsJournal of Accounting Economics, 42
H. Skaife, D. Collins, Ryan LaFond (2004)
The Effects of Corporate Governance on Firms' Credit RatingsCorporate Finance: Capital Structure & Payout Policies eJournal
A. (2005)
Management's Incentives to Avoid Negative Earnings Surprises
R. Eccles, Robert Herz, E. Keegan, David Phillips (2001)
The ValueReporting Revolution: Moving Beyond the Earnings Game
(1993)
excluding utilities and financial services firms (two-digit SIC codes
Douglas Skinner, Richard Sloan (1999)
Earnings Surprises, Growth Expectations, and Stock Returns or Don't Let an Earnings Torpedo Sink Your PortfolioReview of Accounting Studies, 7
L. Brown (2001)
A Temporal Analysis of Earnings Surprises: Profits Versus LossesSPGMI: Compustat Fundamentals (Topic)
Somnath Das, Pervin Shroff (2002)
Fourth Quarter Reversals in Earnings Changes and Earnings Management
Sudipta Basu, Lee-Seok Hwang, C. Jan (2002)
Auditor Conservatism and Quarterly Earnings
François Degeorge, Jayen Patel, R. Zeckhauser (1999)
Earnings Management to Exceed ThresholdsThe Journal of Business, 72
(1998)
The Guidance Game.
Richard Frankel, Marilyn Johnson, Karen Nelson (2002)
The Relation between Auditors' Fees for Nonaudit Services and Earnings ManagementThe Accounting Review, 77
Bartov Bartov, Givoly Givoly, Hayn Hayn (2002)
The Rewards to Meeting or Beating Earnings ExpectationsJournal of Accounting & Economics, 33
D. Burgstahler, Michael Eames (2006)
Management of Earnings and Analysts' Forecasts to Achieve Zero and Small Positive Earnings SurprisesCapital Markets: Market Efficiency
Heninger Heninger (2001)
The Association Between Auditor Litigation and Abnormal AccrualsThe Accounting Review, 76
L. Brown, M. Caylor (2005)
A Temporal Analysis of Quarterly Earnings Thresholds: Propensities and Valuation ConsequencesCorporate Finance: Valuation
Brown Brown (1997)
Analyst Forecasting Errors: Additional EvidenceFinancial Analysts Journal, 53
E. Elton, M. Gruber, M. Gultekin (1981)
Expectations and Share PricesManagement Science, 27
(2006)
Earnings Management to Meet or Beat Analyst Earnings Forecasts Through Changes in Interim Expenses.
Ehsan Feroz, Kyungjoo Park, Victor Pastena (1991)
The Financial and Market Effects of the SEC's Accounting and Auditing Enforcement ReleasesForensic Economics eJournal
Q. Cheng, Terry Warfield, Minlei Ye (2004)
Equity Incentives and Earnings ManagementJournal of Accounting, Auditing & Finance, 26
Connie Becker, Mark Defond, J. Jiambalvo, K. Subramanyam (1998)
The Effect of Audit Quality on Earnings ManagementContemporary Accounting Research, 15
J. Barton, Paul Simko (2002)
The Balance Sheet as an Earnings Management ConstraintSocial Science Research Network
Hwang Hwang, Jan Jan, Basu Basu (1996)
Loss Firms and Analysts' Earnings Forecast ErrorsJournal of Financial Statement Analysis, 1
Somnath Das, Pervin Shroff, H. Zhang (2007)
Quarterly Earnings Patterns and Earnings ManagementFinancial Accounting
Barton Barton, Simko Simko (2002)
The Balance Sheet as an Earnings Management ConstraintThe Accounting Review, 77
J. Comprix, Lillian Mills, Andrew Schmidt (2004)
Bias in Quarterly Estimates of Annual Effective Tax Rates and Earnings Management IncentivesSocial Science Research Network
(1991)
Common Stock Returns Surrounding Earnings Forecast Revisions: More Puzzling Evidence.
Patricia Dechow, Richard Sloan, A. Sweeney (1994)
DETECTING EARNINGS MANAGEMENTAccounting review: A quarterly journal of the American Accounting Association, 70
P-values are one-sided for PERIOD and two-sided for control variables
Barsky Barsky (May 8, 2002)
The Market GameWall Street Journal
Richard Mendenhall, William Nichols (1988)
Bad News and Differential Market Reactions to Announcements of Earlier-Quarters Versus Fourth-Quarter EarningsJournal of Accounting Research, 26
D. Burgstahler, Ilia Dichev (1997)
Earnings Management to Avoid Earnings Decreases and LossesJournal of Accounting and Economics, 24
Jeffery Abarbanell, Reuven Lehavy (2002)
Can Stock Recommendations Predict Earnings Management and Analysts' Earnings Forecast Errors?The Stephen M. Ross School of Business at the University of Michigan Research Paper Series
Lee-Seok Hwang, C. Jan, Sudipta Basu (1996)
Loss Firms and Analysts' Earnings Forecast ErrorsFox School of Business
Cheng Cheng, Warfield Warfield (2005)
Equity Incentives and Earnings ManagementThe Accounting Review, 80
Sudipta Basu, Lee-Seok Hwang, C. Jan (2005)
Auditor Conservatism and Analysts' Fourth Quarter Earnings ForecastsSPGMI: Compustat Fundamentals (Topic)
Burgstahler Burgstahler, Eames Eames (2006)
Management of Earnings and Analysts' Forecasts to Achieve Zero and Small Positive Earnings SurprisesJournal of Business, Finance & Accounting, 33
Leuz Leuz, Nanda Nanda, Wysocki Wysocki (2003)
Earnings Management and Investor Protection: An International ComparisonJournal of Financial Economics, 69
Abarbanell Abarbanell, Lehavy Lehavy (2003)
Can Stock Recommendations Predict Earnings Management and Analysts' Earnings Forecast Errors?Journal of Accounting Research, 41
William Heninger (2001)
The Association between Auditor Litigation and Abnormal AccrualsS&P Global Market Intelligence Research Paper Series
John Elliott, W. Shaw (1988)
Write-Offs as Accounting Procedures to Manage PerceptionsJournal of Accounting Research, 26
R. Kalra (2004)
Earnings Management and Investor Protection: An International ComparisonCfa Digest, 34
Feroz Feroz, Park Park, Pastena Pastena (1991)
The Financial and Market Effects of the SEC's Accounting and Auditing Enforcement ReleasesJournal of Accounting Research, 29
Eli Bartov, Dan Givoly, Carla Hayn (1999)
The Rewards to Meeting or Beating Earnings ExpectationsFinancial Accounting
L. Brown (1997)
Analyst Forecasting Errors: Additional EvidenceFox School of Business
P. Christensen, Gerald Feltham, Martin Wu (2000)
'Cost Of Capital' in Residual Income for Performance EvaluationThe Accounting Review, 77
Utpal Bhattacharya, H. Daouk, Michael Welker (2002)
The World Price of Earnings OpacityEuropean Finance Association Meetings (EFA) (Archive)
(1973)
Accounting Principles Board Opinion No. 28
Graham Graham, Harvey Harvey, Rajgopal Rajgopal (2005)
The Economic Implications of Corporate Financial ReportingJournal of Accounting & Economics, 40
K. Palepu (1988)
Discussion of Bad News and Differential Market Reactions to Announcements of Earlier-Quarters Versus Fourth-Quarter EarningsJournal of Accounting Research, 26
ABSTRACT Managers play earnings surprise games to avoid negative earnings surprises by managing earnings upward or by managing analysts' earnings expectations downward. We investigate the effectiveness of the financial reporting process at restraining earnings surprise games. Because the annual reporting process is subject to an independent audit and more rigorous expense recognition rules than interim reporting, it provides managers with fewer opportunities to manage earnings upward. We document that, relative to interim reporting, annual reporting reduces the likelihood of income‐increasing earnings management and, to a lesser extent, of negative surprise avoidance, but increases the magnitude of downward expectations management. Our findings suggest that regulatory attempts to monitor corporations' internal checks and balances are likely to be more effective at curbing upward earnings management than at mitigating negative surprise avoidance.
Journal of Accounting Research – Wiley
Published: Dec 1, 2007
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.