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
D. Burgstahler, Michael Eames (2003)
Earnings Management to Avoid Losses and Earnings Decreases: Are Analysts Fooled?*Contemporary Accounting Research, 20
(2010)
Accounting alchemy . Unpublished working paper , BIS working papers
D. Cohen, R. Mashruwala, Tzachi Zach (2010)
The use of advertising activities to meet earnings benchmarks: evidence from monthly dataReview of Accounting Studies, 15
Kent Womack (1996)
Do Brokerage Analysts' Recommendations Have Investment Value?Journal of Finance, 51
Simona Mola, P. Rau, A. Khorana (2012)
Is There Life after the Complete Loss of Analyst Coverage?Corporate Governance: Actors & Players eJournal
S. Dutta, Brett Trueman (2002)
The Interpretation of Information and Corporate Disclosure StrategiesReview of Accounting Studies, 7
Paul Fischer, Phillip Stocken (2004)
Effect of Investor Speculation on Earnings ManagementJournal of Accounting Research, 42
Ron Kasznik, M. McNichols (1999)
Does Meeting Expectations Matter? Evidence from Analyst Forecast Revisions and Share PricesFinancial Accounting
John McInnis (2009)
Earnings Smoothness, Average Returns, and Implied Cost of Equity CapitalFinancial Accounting
P. Healy (2015)
The effects of bonus schemes on accounting decisions
Jeff Chen, Lynn Rees, S. Sivaramakrishnan (2010)
On the Use of Accounting vs. Real Earnings Management to Meet Earnings Expectations - A Market Analysis
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
AY Zang (2012)
Evidence on the trade-off between real activities manipulation and accrual-based earnings managementThe Accounting Review, 87
B. Mittendorf, Yun Zhang (2005)
The Role of Biased Earnings Guidance in Creating a Healthy Tension between Managers and AnalystsAccounting review: A quarterly journal of the American Accounting Association, 80
James Myers, Linda Myers, Douglas Skinner (2006)
Earnings Momentum and Earnings ManagementJournal of Accounting, Auditing & Finance, 22
(1989)
Did firms undertake debt-equity swaps for an accounting paper profit or true financing gain? The Accounting Review
(1981)
Smoothing income numbers: Objectives and implications
A. Beyer (2008)
Financial Analysts' Forecast Revisions and Managers' Reporting BehaviorJournal of Accounting and Economics, 46
E Bartov, D Givoly, C Hayn (2002)
The rewards to meeting or beating earnings expectationsJournal of Accounting and Economics, 33
A detailed description of the nonresponse and representativeness tests is available upon request from the authors
L. Brown, Michael Rozeff (1978)
The Superiority of Analyst Forecasts as Measures of Expectations: Evidence from EarningsMutual Funds
Patricia Dechow, Weili Ge, Catherine Schrand (2010)
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their ConsequencesJournal of Accounting and Economics, 50
J McInnis (2010)
Earnings smoothness, average returns, and implied cost of equity capitalThe Accounting Review, 85
J. Coles, M. Hertzel, Swaminathan Kalpathy (2006)
Earnings Management Around Employee Stock Option ReissuesLabor: Personnel Economics
Sheila Puffer, J. Weintrop (1991)
Corporate Performance and CEO Turnover: The Role of Performance ExpectationsAdministrative Science Quarterly, 36
Mark Defond, Chul Park (1999)
The effect of competition on CEO turnoverJournal of Accounting and Economics, 27
Sugata Roychowdhury (2006)
Earnings Management Through Real Activities ManipulationSPGMI: Compustat Fundamentals (Topic)
Brett Trueman, S. Titman (1988)
An Explanation for Accounting Income SmoothingJournal of Accounting Research, 26
Cristi Gleason, Lillian Mills (2008)
Evidence of differing market responses to beating analysts’ targets through tax expense decreasesReview of Accounting Studies, 13
P. Hribar, N. Jenkins, W. Johnson (2004)
Stock Repurchases as an Earnings Management DeviceFinancial Accounting
Amy Zang (2011)
Evidence on the Trade-Off between Real Activities Manipulation and Accrual-Based Earnings ManagementCorporate Finance: Governance
Stanley Block (1999)
A Study of Financial Analysts: Practice and TheoryFinancial Analysts Journal, 55
Mary Barth, John Elliott, Mark Finn (1999)
Market rewards associated with patterns of increasing earningsJournal of Accounting Research, 37
V Athanasakou, NC Strong, M Walker (2011)
The market reward to achieving analyst earnings expectations: Does managing expectations or earnings matter?Journal of Business Finance & Accounting, 38
JRM Hand (1989)
Did firms undertake debt-equity swaps for an accounting paper profit or true financing gain?The Accounting Review, 64
Patricia Dechow, Richard Sloan (1991)
Executive incentives and the horizon problem: An empirical investigationJournal of Accounting and Economics, 14
Benjamin Ayers, John Jiang, P. Yeung (2006)
Discretionary Accruals and Earnings Management: An Analysis of Pseudo Earnings TargetsAmerican Accounting Association Meetings (AAA)
D. Burgstahler, Ilia Dichev (1997)
Earnings Management to Avoid Earnings Decreases and LossesJournal of Accounting and Economics, 24
R Kasznik, MF McNichols (2002)
Does meeting earnings expectations matter? Evidence from analyst forecast revisions and share pricesJournal of Accounting Research, 40
Douglas Skinner, Richard Sloan (1999)
Earnings Surprises, Growth Expectations, and Stock Returns: Don't Let an Earnings Torpedo Sink Your PortfolioRoss: Accounting (Topic)
PM Dechow, RG Sloan (1991)
Executive incentives and the horizon problemJournal of Accounting and Economics, 14
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
CR Beidleman (1973)
Income smoothing: The role of managementThe Accounting Review, 48
PM Dechow, DJ Skinner (2000)
Earnings management: Reconciling the views of accounting academics, practitioners, and regulatorsAccounting Horizons, 14
M. Gibbins, Susan McCracken, Steven Salterio (2007)
The Chief Financial Officer's Perspective on Auditor Client NegotiationsContemporary Accounting Research, 24
J Abarbanell, R Lehavy (2003)
Can stock recommendations predict earnings management and analysts’ earnings forecast errors?Journal of Accounting Research, 41
LD Brown, M Rozeff (1978)
The superiority of analyst forecasts as measures of expectations: Evidence from earningsJournal of Finance, 33
Kyungho Kim, Douglas Schroeder (1990)
Analysts' use of managerial bonus incentives in forecasting earningsJournal of Accounting and Economics, 13
R. Bowen, L. DuCharme, D. Shores (1995)
Stakeholders' Implicit Claims and Accounting Method ChoiceJournal of Accounting Abstracts
J. Francis, Ryan LaFond, Per Olsson, K. Schipper (2004)
Costs of Equity and Earnings AttributesThe Accounting Review, 79
Patricia Dechow, Douglas Skinner (2000)
Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and RegulatorsFinancial Accounting eJournal
D. Fudenberg, J. Tirole (1995)
A Theory of Income and Dividend Smoothing Based on Incumbency RentsJournal of Political Economy, 103
V. Athanasakou, N. Strong, M. Walker (2010)
The Market Reward for Achieving Analyst Earnings Expectations: Does Managing Expectations or Earnings Matter?Capital Markets: Market Efficiency eJournal
(2010)
Unpublished working paper
P Hribar, NT Jenkins, WB Johnson (2006)
Stock repurchases as an earnings management deviceJournal of Accounting and Economics, 41
K. Farrell, David Whidbee (2003)
The Impact of Firm Performance Expectations on CEO Turnover and Replacement DecisionsJournal of Accounting & Economics (JAE) Conference Series
Eli Bartov, Dan Givoly, Carla Hayn (1999)
The Rewards to Meeting or Beating Earnings ExpectationsFinancial Accounting
Divya Anantharaman, Y. Zhang (2011)
Cover Me: Managers' Responses to Changes in Analyst Coverage in the Post-Regulation FD PeriodThe Accounting Review, 86
Sanjeev Bhojraj, P. Hribar, Marc Picconi, John McInnis (2009)
Making Sense of Cents: An Examination of Firms That Marginally Miss or Beat Analyst ForecastsJournal of Finance, 64
E Bartov (1993)
The timing of asset sales and earnings manipulationThe Accounting Review, 66
Jonathan Karpoff, D. Lee, Gerald Martin (2008)
The Consequences to Managers for Financial MisrepresentationLabor: Public Policy & Regulation
Mark Lang, Russell Lundholm (1998)
Corporate Disclosure Policy and Analyst Behavior
Richard Sloan (1998)
Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future EarningsThe Accounting Review, 71
Jonathan Karpoff, D. Lee, Gerald Martin (2008)
The Cost to Firms of Cooking the BooksJournal of Financial and Quantitative Analysis, 43
JR Graham, CR Harvey, S Rajgopal (2005)
The economic implications of corporate financial reportingJournal of Accounting and Economics, 40
Survey evidence shows CFOs to believe that earnings management can enhance investor valuation of their firms. This evidence raises the question of correspondence between the beliefs of CFOs and investors. Surveying financial analysts to gain insight into how earnings management influences investor perception of firm value, we find analysts’ and CFOs’ beliefs to be generally consistent. We find that analysts perceive meeting earnings benchmarks and smoothing earnings to enhance investor perception of firm value and all earnings management actions to reach a benchmark, save share repurchases, to be value destroying. CFOs, however, are reluctant to repurchase shares, preferring to use techniques viewed by analysts as value destroying (e.g., reductions in discretionary spending). Analysts’ inability to unravel such techniques perhaps explains CFOs’ preferences.
Review of Accounting Studies – Springer Journals
Published: Oct 8, 2013
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.