... real earnings management is embedded in operating decisions, such as discretionary spending, cash-flow management, production decisions, or asset sales. These activities may be less visibly accounting-based than accrual manipulation and may therefore represent a more plausible short-run response...

..., where internal audit is mandatory, but governance enforcement remains weak. Financial statement fraud, which is frequently manifested through accrual-based earnings management (AEM) or real earnings management (REM), remains a persistent threat to market integrity worldwide. Previous studies...

...Yang Lou; Yicheng Wang; Brian Wright Purpose The research objective of this paper is to investigate the relationship between real earnings management (hereafter EM) and non-conforming tax avoidance (hereafter TM). Design/methodology/approach This study employs multiple linear regression...

...Xiaojun Lin; Xunzhuo Xi; Yu Hu; Feng Tang Purpose This study aims to explore the relationship between social capital and real earnings management (REM). Design/methodology/approach Using the social capital index from 1990 to 2014, this study investigates whether managers are less likely...

... in China. However, adopters tend to engage in more real earnings management, and their revenue and earnings exhibit less persistence. Additional analysis shows that the new revenue standard substitutes for firm-level control factors in shaping the trade-off between accrual-based and real earnings...

... the capability of management to generate sales from resources that are directly under their control. The study then compares the incremental effect that managerial decision making can have on real earnings management (REM) and future firm performance (period t+1 to t+5). Findings The study makes two...

... suggest that (1) firms with lower risk of business failure but with stronger incentives to adjust earnings upward tend to use real earnings management (REM) income-increasing approaches while (2) at the same time, using discretionary accruals for income-decreasing earnings management, due to constraints...

...Manish Bansal; Asgar Ali Purpose The study presents the zero investment strategies based on the pricing impact of real earnings management (REM) on stock returns after taking into account the direction and endogeneity nature of REM. Design/methodology/approach The authors use standard...

... 09 2018 28 01 2019 23 06 2019 19 10 2019 © Emerald Publishing Limited 2019 Emerald Publishing Limited Licensed re-use rights only Earnings management Real earnings management Real activities manipulation Earnings guidance Short-term management earnings forecasts...

...Sandhya Bhatia; Sangita Choudhary; Amish Dugar; Smita Mazumdar Purpose The purpose of this paper is to investigate the impact of agency risk implied in case of personal debt obtained by promoters through pledging of their stock on accrual and real earnings management practices. Design...

... management is examined. Findings The findings show that pyramid-affiliated firms engage in less accrual-based and real earnings management than non-pyramid-affiliated firms. The results further show that the divergence between control rights and cash flow rights of the controlling shareholders...

...Prapaporn Kiattikulwattana Purpose – The purpose of this paper is to investigate the relationship between voluntary disclosure of a statement of management's responsibility for the financial reports (MRF) and earnings management, both accrual and real earnings management, in firms listed...

... – This study finds that firms managed earnings, including accrual-based earnings management and real earnings management, to decrease income in the fourth quarter of 2007, and to increase income in the first quarter of 2008. It suggests that the real estate firms were shifting income from the fourth quarter...