Description
Book SynopsisThis book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?
Trade ReviewFrom the reviews:
“Provides a comprehensive overview of academic research … . suited for most types of readers, from accounting researchers to managers. Still, I envision doctoral students and more experienced accounting scholars to be the primary target audience for this book. … In my opinion, this book is very well written and executed … . Within its scope, this book is an accounting scholar’s must-have, an interesting read providing us with not only the author’s perspective on earnings management but also a very useful literature overview.” (Vedran Capkun, The International Journal of Accounting, Vol. 46 (2), June, 2011)
Table of ContentsThe Importance of Earnings.- Definition of Earnings Management.- The Management.- Users.- Gatekeepers.- Truth-Telling.- Smoothing.- Maximization and Minimization.- The Accruals Process.- The Accruals Methodology.- Modifications to the Jones Model and Alternative Methodologies.
