题名

Modeling the Effect of Tightening Accounting Standards on Earnings Management: An Ewert-Wagenhofer Inspired Approach

DOI

10.6293/AQAFA.2010.08.03

作者

Marc Jegers

关键词

Earnings management ; Accounting standards

期刊名称

Advances in Quantitative Analysis of Finance and Accounting

卷期/出版年月

8期(2010 / 06 / 01)

页次

53 - 64

内容语文

英文

英文摘要

Studying the effect of tightening accounting standards on earnings management and the quality of financial information is a very relevant topic both from a policy and an academic point of view. The paper by Ewert and Wagenhofer (2005) is an impressive contribution in this domain. This paper shows that their approach can be made even more appealing by applying optimization techniques without requiring any distributional assumption and by modeling more realistically the effect of real earnings management on the firm’s value. Under these very acceptable conditions, it is then shown that tightening accounting standards leads to increasing the value relevance of reported earnings, reducing the reported earnings variability, increasing expected real earnings management, and decreasing both accounting and overall earnings management.

主题分类 社會科學 > 經濟學
社會科學 > 財金及會計學
参考文献
  1. Ewert, R.,Wagenhofer, A.(2005).Economic effects of tightening accounting standards to restrict earnings management.The Accounting Review,80,1101-1124.
  2. Feldman, D.,Fox, M.(1991).Probability: The mathematics of uncertainty.New York:Marcel Dekker.