Template-Type: ReDIF-Paper 1.0
Author-Name: Fok, D.
Author-Name-Last: Fok
Author-Name-First: Dennis
Author-Name: Franses, Ph.H.B.F.
Author-Name-Last: Franses
Author-Name-First: Philip Hans
Author-Person: pfr226
Title: Testing Earning Management
Abstract: Earnings management to avoid earnings decreases and losses implies that the time series properties of the last quarter in the fiscal year differ from those of the other three quarters. We propose a simple parametric methodology to diagnose such differences. Application to a random sample of 390 firms in the Compustat database gives strong evidence of earnings management.
Creation-Date: 2009-11-26
File-URL: https://repub.eur.nl/pub/17346/EI2009-31.pdf
File-Format: application/pdf
Series: RePEc:ems:eureir
Number: EI 2009-31
Classification-JEL: M41
Keywords: earnings management, periodic time series models
Handle: RePEc:ems:eureir:17346