Download This PaperWhat Have We Learned About Earnings Management? Integrating Discontinuity Evidence
35 Pages Posted: 20 Jun 2011 Last revised: 18 Jul 2015
Date Written: March 30, 2015
Abstract
The accounting literature includes numerous examples of discontinuities at prominent benchmarks that are widely interpreted as evidence that earnings are managed to meet those benchmarks. However, there are also a few examples where discontinuities do not exist, which are sometimes interpreted as inconsistent with earnings management. There are also several suggested alternative explanations for discontinuities. This paper reviews and integrates the various elements of the body of discontinuity-related evidence.
Keywords: earnings management, discontinuities
JEL Classification: G14, M40
Suggested Citation: Suggested Citation
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