Is Abnormal Real Earnings Management A Top Priority in Earnings Management Strategies?

Abstract

This paper examines how managers use earnings management strategies and the sequence between accrual-based and real earnings management Based on a sample of U S publicly held companies during the period between 1992 and 2015 this paper documents that managers use accrual-based earnings management and real earnings management in a supplementary manner controlling for the costs of conducting earnings management In contrast to the literature which shows that managers prefer real activity manipulation this study shows that managers consider abnormal real activity manipulation as the last resort in their income-increasing earnings management strategies

Date of Award	2016 Jul 5
Original language	English
Supervisor	Hsuan-Chu Lin (Supervisor)