Jacob, John and Jorgensen, Bjorn N. (2007) Earnings management and accounting income aggregation. Journal of Accounting and Economics, 43 (2-3). pp. 369-390. ISSN 0165-4101
Full text not available from this repository.Abstract
Quarterly earnings allow aggregation into annual earnings in four different ways. Fiscal year earnings is one measure of annual earnings, the others being earnings for annual periods ending at interim quarter-ends. We investigate earnings management in fiscal year earnings relative to these alternative measures of firms’ annual earnings. We confirm prior findings in Burgstahler and Dichev (1997. Earnings management to avoid earnings decreases and losses. Journal of Accounting and Economics 24, 99–126) of discontinuities around zero and prior year earnings in histograms of earnings. Subsequent research questions whether these discontinuities are evidence of earnings management. Using histograms of our alternative annual earnings measures, we offer evidence suggesting earnings management is responsible for the discontinuities.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.sciencedirect.com/science/journal/01654... |
| Additional Information: | © 2007 Elsevier |
| Divisions: | Accounting |
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
| JEL classification: | M - Business Administration and Business Economics; Marketing; Accounting > M4 - Accounting and Auditing M - Business Administration and Business Economics; Marketing; Accounting > M4 - Accounting and Auditing > M41 - Accounting |
| Date Deposited: | 01 Aug 2013 13:47 |
| Last Modified: | 13 Sep 2024 22:21 |
| URI: | http://eprints.lse.ac.uk/id/eprint/51315 |
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