Earnings Management to Exceed Thresholds

摘要: Earnings provide important information for investment decisions. Thus, executives--who are monitored by investors, directors, customers, and suppliers--acting in self-interest at times shareholders, have strong incentives to manage earnings. The authors introduce behavioral thresholds earnings management. A model shows how induce specific types of Empirical explorations identify management exceed each three thresholds: report positive profits, sustain recent performance, meet analysts' expectations. profits threshold proves predominant. future performance firms suspect boosting just across a is poorer than that control group firms. Copyright 1999 University Chicago Press.