Do Non-GAAP Earnings Influence Managerss Real Activities and Accounting Choices?

2017 ◽  
Author(s):  
Henry Laurion
Keyword(s):  
2006 ◽  
Vol 23 (2) ◽  
pp. 369-394 ◽  
Author(s):  
Frank D. Hodge ◽  
Roger D. Martin ◽  
Jamie H. Pratt
Keyword(s):  

2009 ◽  
Vol 84 (5) ◽  
pp. 1553-1573 ◽  
Author(s):  
Paul Kalyta

ABSTRACT: Empirical research on the impact of managerial retirement on discretionary accounting choices is inconclusive, with most studies finding no evidence of earnings management in the pre-retirement period. I argue that income-increasing accounting choices in final pre-retirement years are particularly appealing to managers whose pension depends on firm performance in these years. Using primary data on retired CEOs of Fortune 1000 firms, I investigate the impact of CEO pension plans on discretionary accruals. Consistent with the prediction, I find evidence of income-increasing earnings management in the pre-retirement period only when CEO pension is based on firm performance. I also report evidence of negative abnormal market reaction to CEO retirement in firms with performance-contingent CEO pensions.


2011 ◽  
Author(s):  
Reining Petacchi ◽  
Nolan Y. Kido ◽  
Joseph Peter Weber
Keyword(s):  

2019 ◽  
Vol 22 (3) ◽  
pp. 368-385
Author(s):  
Paulo Roberto da Cunha ◽  
Alini da Silva ◽  
Leonardo Bernardi Rohenkohl

2011 ◽  
Vol 10 (1) ◽  
pp. 92 ◽  
Author(s):  
Richard H. Fern ◽  
Betty C. Brown ◽  
Steven W. Dickey

<span>This paper reports the results of a study of income smoothing in the oil refining industry for years 1971 through 1989. Evidence of a political motivation to practice such smoothing behavior is also reported. The methodology follows closely that of Ronen and Sadan (1981) which found strong smoothing behavior for oil firms in the 1953 to 1972 period. Two types of smoothing behavior were examined classificatory and intertemporal. Based on the analysis, oil firms were found to have a strong political motivation to manage reported earnings. There was no evidence of significant classificatory smoothing behavior by the 26 firms in the study. However, there was significant intertemporal smoothing behavior suggested, although to a less degree than that suggested by Ronen and Sadan. This reduction in smoothing behavior seems to indicate that over the past 20 years standard setters have been somewhat successful in reducing purely arbitrary accounting choices.</span>


2018 ◽  
Vol 64 (3) ◽  
pp. 107
Author(s):  
Patricia De Souza Costa ◽  
Aline Fernandes Pinto ◽  
Felipe Menezes Nunes ◽  
Sirlei Lemes
Keyword(s):  

2019 ◽  
Vol 13 ◽  
pp. e164412
Author(s):  
Adolfo Henrique Coutinho e Silva ◽  
Moacir Sancovschi ◽  
Ariane Gabriela Chagas dos Santos

This paper has two objectives: (1) to demonstrate that the main accounting choices made by accountants and managers of OGX Company throughout its full business life cycle were not opportunistic, as often suggested by the hypothesis of Positive Accounting Theory; and (2) to demonstrate that these accounting choices may be better explained by the Theory of Corporate Scandals, by the Monitoring Hypothesis and by the Corporate Reputation Hypothesis. The research was conducted using a longitudinal case study approach, from 2006-2015, in order to identify visible accounting decisions in annual financial statements reports. It was found that the analyzed Company had the incentives to preform opportunistic accounting choices, such as the ones predicted by the PAT hypothesis and had also done through several situations in its business life cycle that could have influenced it to perform opportunistic accounting choices. However, there is no evidence that the Company ever made use of either opportunistic increasing-income accounting changes to impact their financial debt-covenants and bonus plan, or decreasing-income accounting to avoid government intervention, as suggested by the opportunistic approach of PAT hypothesis.


2019 ◽  
Vol 19 (1) ◽  
pp. 73-83
Author(s):  
Giorgio Gotti ◽  
Marco Fasan

ABSTRACT Oftentimes, research ideas in the international accounting field arise from the comparison of different contexts and from the curiosity to understand how different constructs work in various settings. Despite knowledge and understanding of the institutional, cultural, and legal settings of countries are prerequisites for this kind of research, studies often focus on very narrow issues and do not allow a grasp of the big picture of the institutional feature of a country, and how this can influence managers' decisions related to accounting choices and disclosures. This paper aims at filling this gap and at fostering an understanding of the Italian institutional setting (e.g., culture, societal values, corporate governance, GAAPs, auditing, and tax regulations), thereby facilitating the work of international accounting researchers who wish to include Italian firms in their samples.


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