Earnings management at rights issues thresholds—Evidence from China

摘要: Abstract Burgstahler and Dichev (BD) (Burgstahler, David, Ilia, Dichev, 1997. Earnings management to avoid earnings decreases losses. Journal of Accounting Economics 23(1), 99–126.) Degorge, Patel, Zeckhauser (DPZ) (Degeorge, Franscois, Jayendu, Zeckhauser, Richard, 1999. exceed thresholds. Business 72(1), 1–33.) examine among American firms by looking at actual distributions around critical Chinese must meet minimal ROE requirements if they are have rights issues. Using a distribution approach, we whether manipulate their the regulatory requirements. Our empirical findings indicate that indeed heavily engaged in issue thresholds during period 1994–2002. In addition, show these changed behavior response changes Furthermore, analyse pervasiveness this practice means used relevant direct policy implications for China Securities Regulatory Committee (CSRC).