... in both directions, and they are likely to trade off relative costs between accrual-based earnings management (AEM) and real earnings management (REM). Design/methodology/approach This study uses ordinary least square regressions to examine the association of managerial ability on the relations...

...Qunfeng Liao; Bo Ouyang Purpose The authors study how shareholder litigation risk impacts a firm’s decision of real earnings management (REM). This paper aims to shed light on how shareholder litigation risk impacts REM. The authors further explore how the intensifying effect varies systematically...

.../approach The authors use various techniques and regressions to test the hypotheses. Following prior research, several proxies have been used to measure diversification, accrual earnings management and real earnings management. Findings The study produces several important findings. First, the study...

... 2017 Emerald Publishing Limited Licensed re-use rights only Discretionary accruals Mergers and acquisitions Real earnings management Bidders in stock swap deals have an incentive to inflate earnings figures prior to an M&A. The theory is that the higher earnings figures...

...' propensity to use either downward forecast guidance or real earnings management as a substitute mechanism to avoid earnings surprises. Design/methodology/approach Following Barton and Simko, the paper uses the beginning balance of net operating assets relative to sales as a proxy for the balance sheet...