Understanding earnings quality: A review of the proxies, their determinants and their consequences

Abarbanell, 1997, Fundamental analysis, future earnings, and stock prices, Journal of Accounting Research, 35, 1, 10.2307/2491464 Abarbanell, 2003, Can stock recommendations predict earnings management and analysts’ earnings forecast errors?, Journal of Accounting Research, 41, 1, 10.1111/1475-679X.00093 Abbott, 2004, Audit committee characteristics and restatements, Auditing, 23, 69, 10.2308/aud.2004.23.1.69 Aboody, 1999, Revaluations of fixed assets and future firm performance: evidence from the UK, Journal of Accounting and Economics, 26, 149, 10.1016/S0165-4101(98)00040-8 Aboody, 2005, Earnings quality, insider trading, and cost of capital, Journal of Accounting Research, 43, 651, 10.1111/j.1475-679X.2005.00185.x Aboody, D., Kasznik, R., 2000. CEO stock option awards and corporate voluntary disclosures. Working Paper, UCLA and Stanford University. Abreu, 2002, Synchronization risk and delayed arbitrage, Journal of Financial Economics, 66, 341, 10.1016/S0304-405X(02)00227-1 Adams, R., Hermalin, B., Weisbach, M., 2008. The role of boards of directors in corporate governance: a conceptual framework and survey. Working Paper, University of Queensland, Ohio State University, and University of California, Berkeley. Affleck-Graves, 2002, Earnings predictability, information asymmetry, and market liquidity, Journal of Accounting Research, 40, 561, 10.1111/1475-679X.00062 Agrawal, 2005, Corporate governance and accounting scandals, Journal of Law and Economics, 48, 371, 10.1086/430808 Aharoni, 1989, The choice among accounting alternatives and management compensation: effects of corporate tax, The Accounting Review, 64, 69 Aharony, 1993, Initial public offerings, accounting choices, and earnings management, Contemporary Accounting Research, 10, 61, 10.1111/j.1911-3846.1993.tb00382.x Ahmed, 1994, Accounting earnings and future economic rents: an empirical analysis, Journal of Accounting and Economics, 17, 377, 10.1016/0165-4101(94)90034-5 Ahmed, 1999, Bank loan loss provisions: a reexamination of capital management, earnings management and signaling effects, Journal of Accounting and Economics, 28, 1, 10.1016/S0165-4101(99)00017-8 Albrecht, 1977, The time-series properties of annual earnings, Journal of Accounting Research, 15, 226, 10.2307/2490350 Alford, 1993, The relative informativeness of accounting disclosures in different countries, Journal of Accounting Research, 31, 183, 10.2307/2491170 Ali, 2000, Country-specific factors related to financial reporting and the value relevance of accounting data, Journal of Accounting Research, 38, 1, 10.2307/2672920 Allen, E., Larson, C., Sloan, R., 2009. Accrual reversals, earnings and stock returns. Working Paper, University of California, Berkeley, Washington University in St. Louis. Altamuro, J., Beatty, A., 2010. How does internal control regulation affect financial reporting? Journal of Accounting and Economics 49, 58–74. Altamuro, 2005, The effects of accelerated revenue recognition on earnings management and earnings informativeness: evidence from SEC Staff Accounting Bulletin No. 101, The Accounting Review, 80, 373, 10.2308/accr.2005.80.2.373 American Institute of Certified Public Accountants (AICPA), 1988 American Institute of Certified Public Accountants (AICPA), 1988 Amir, 1993, A comparison of the value-relevance of U.S. versus non-U.S. GAAP accounting measures using Form 20-F reconciliations, Journal of Accounting Research, 31, 230, 10.2307/2491172 Anderson, 2004, Board characteristics, accounting report integrity, and the cost of debt, Journal of Accounting and Economics, 37, 315, 10.1016/j.jacceco.2004.01.004 Armstrong, C., Guay, W., Weber, J., 2010a. The role of information and financial reporting in corporate governance and debt contracting. Working Paper, University of Pennsylvania and MIT. Armstrong, 2010, Chief executive officer equity incentives and accounting irregularities, Journal of Accounting Research, 48, 225, 10.1111/j.1475-679X.2009.00361.x Armstrong, C., Foster, G., Taylor, D., 2010c. Earnings management around initial public offerings: a re-examination. Working Paper, University of Pennsylvania and Stanford University. Ashbaugh, 2003, Do nonaudit services compromise auditor independence? Further evidence, The Accounting Review, 78, 611, 10.2308/accr.2003.78.3.611 Ashbaugh, 2001, Domestic accounting standards, international accounting standards, and the predictability of earnings, Journal of Accounting Research, 39, 417, 10.1111/1475-679X.00020 Ashbaugh-Skaife, 2007, The discovery and reporting of internal control deficiencies prior to SOX-mandated audits, Journal of Accounting and Economics, 44, 166, 10.1016/j.jacceco.2006.10.001 Ashbaugh-Skaife, 2008, The effect of SOX internal control deficiencies and their remediation on accrual quality, The Accounting Review, 83, 217, 10.2308/accr.2008.83.1.217 Ashbaugh-Skaife, 2009, The effect of SOX internal control deficiencies on firm risk and cost of equity, Journal of Accounting Research, 47, 1, 10.1111/j.1475-679X.2008.00315.x Ayers, 2006, Discretionary accruals and earnings management: an analysis of pseudo earnings targets, The Accounting Review, 81, 617, 10.2308/accr.2006.81.3.617 Baber, 2006, Stock price reaction to evidence of earnings management: implications for supplementary financial disclosure, Review of Accounting Studies, 11, 5, 10.1007/s11142-006-6393-0 Baber, 1998, Accounting earnings and executive compensation: the role of earnings persistence, Journal of Accounting and Economics, 25, 169, 10.1016/S0165-4101(98)00021-4 Baginski, 1999, The relationship between economic characteristics and alternative annual earnings persistence measures, The Accounting Review, 74, 105, 10.2308/accr.1999.74.1.105 Baker, 2003, Stock option compensation and earnings management incentives, Journal of Accounting, Auditing, and Finance, 18, 557, 10.1177/0148558X0301800408 Ball, 1972, Changes in accounting techniques and stock prices, Journal of Accounting Research, 10, 1, 10.2307/2489860 Ball, 1967, Some preliminary findings on the association between the earnings of a firm, its industry, and the economy, Journal of Accounting Research, 5, 55, 10.2307/2489908 Ball, 1968, An empirical evaluation of accounting income numbers, Journal of Accounting Research, 6, 159, 10.2307/2490232 Ball, 1982, Corporate financial reporting: a methodological review of empirical research, Journal of Accounting Research, 20, 161, 10.2307/2674681 Ball, 2000, The effect of international institutional factors on properties of accounting earnings, Journal of Accounting and Economics, 29, 1, 10.1016/S0165-4101(00)00012-4 Ball, 2008, Is financial reporting shaped by equity markets or by debt markets? An international study of timeliness and conservatism, Review of Accounting Studies, 13, 168, 10.1007/s11142-007-9064-x Ball, 2003, Incentives versus standards: properties of accounting income in four East Asian countries, Journal of Accounting and Economics, 36, 235, 10.1016/j.jacceco.2003.10.003 Ball, 2005, Earnings quality in UK private firms: comparative loss recognition timeliness, Journal of Accounting and Economics, 39, 83, 10.1016/j.jacceco.2004.04.001 Balsam, 1998, Discretionary accounting choices and CEO compensation, Contemporary Accounting Research, 15, 229, 10.1111/j.1911-3846.1998.tb00558.x Balsam, S., Chen, H., Sankaraguruswamy, S., 2003. Earnings management prior to stock option grants. Working Paper, Temple University, Arizona State University, and National University of Singapore. Balsam, 1995, Mandated accounting changes and managerial discretion, Journal of Accounting and Economics, 20, 3, 10.1016/0165-4101(94)00374-E Barefield, 1971, Depreciation policy and the behavior of corporate profits, Journal of Accounting Research, 9, 351, 10.2307/2489938 Barnea, 1976, Classificatory smoothing of income with extraordinary items, The Accounting Review, 51, 110 Barron, 2001, Misstatement direction, litigation risk, and planned audit investment, Journal of Accounting Research, 39, 449, 10.1111/1475-679X.00022 Barth, 2001, Accruals and the prediction of future cash flow, The Accounting Review, 76, 27, 10.2308/accr.2001.76.1.27 Barth, 1999, Market rewards associated with patterns of increasing earnings, Journal of Accounting Research, 37, 387, 10.2307/2491414 Barth, 2008, International accounting standards and accounting quality, Journal of Accounting Research, 46, 467, 10.1111/j.1475-679X.2008.00287.x Barton, 2002, The balance sheet as an earnings management constraint, The Accounting Review, 77, 1, 10.2308/accr.2002.77.s-1.1 Bartov, 1993, The timing of asset sales and earnings manipulation, The Accounting Review, 68, 840 Bartov, 2002, The rewards to meeting or beating earnings expectations, Journal of Accounting and Economics, 33, 173, 10.1016/S0165-4101(02)00045-9 Bartov, 1998, Stock price behavior around announcements of write-offs, Review of Accounting Studies, 3, 327, 10.1023/A:1009644800963 Basu, 1997, The conservatism principle and the asymmetric timeliness of earnings, Journal of Accounting and Economics, 24, 3, 10.1016/S0165-4101(97)00014-1 Bayley, L., Taylor S., 2007. Identifying earnings overstatements: a practical test. Working Paper, ABN Amro Sydney and University of New South Wales. Beasley, 1996, An empirical analysis of the relation between the board of director composition and financial statement fraud, The Accounting Review, 71, 443 Beatty, 1995, Managing financial reports of commercial banks: the influence of taxes, regulatory capital, and earnings, Journal of Accounting Research, 33, 231, 10.2307/2491487 Beatty, 1999, The effects of taxes, agency costs and information asymmetry on earnings management: a comparison of public and private firms, Review of Accounting Studies, 4, 299, 10.1023/A:1009642403312 Beatty, 2002, Earnings management to avoid earnings declines across publicly and privately held banks, The Accounting Review, 77, 547, 10.2308/accr.2002.77.3.547 Beaver, 1968, The information content of annual earnings announcements, Journal of Accounting Research, 6, 67, 10.2307/2490070 Beaver, 1970, The time series behavior of earnings, Journal of Accounting Research, 8, 62, 10.2307/2674693 Beaver, 1996, Discretionary behavior with respect to allowances for loan losses and the behavior of security prices, Journal of Accounting and Economics, 22, 177, 10.1016/S0165-4101(96)00428-4 Beaver, W., Landsman, W., Owens, E., 2008. Asymmetry in earnings timeliness and persistence: a simultaneous equations approach. Working Paper, Stanford University. Beaver, 1998, The characteristics and valuation of loss reserves of property casualty insurers, Review of Accounting Studies, 3, 73, 10.1023/A:1009676300318 Beaver, 2001, Do stock prices of property casualty insurers fully reflect information about earnings, accruals, cash flows, and development?, Review of Accounting Studies, 6, 197, 10.1023/A:1011662825164 Beaver, 2003, Management of the loss reserve accrual and the distribution of earnings in the property-casualty insurance industry, Journal of Accounting and Economics, 35, 347, 10.1016/S0165-4101(03)00037-5 Beaver, 2007, An alternative interpretation of the discontinuity in earnings distributions, Review of Accounting Studies, 12, 525, 10.1007/s11142-007-9053-0 Beaver, 2005, Have financial statements become less informative? Evidence from the ability of financial ratios to predict bankruptcy, Review of Accounting Studies, 10, 93, 10.1007/s11142-004-6341-9 Becker, 1998, The effect of audit quality on earnings management, Contemporary Accounting Research, 15, 1, 10.1111/j.1911-3846.1998.tb00547.x Beidleman, 1973, Income smoothing: the role of management, The Accounting Review, 48, 653 Beneish, 1997, Detecting GAAP violations: implications for assessing earnings management among firms with extreme financial performance, Journal of Accounting and Public Policy, 16, 271, 10.1016/S0278-4254(97)00023-9 Beneish, 1999, Incentives and penalties related to earnings overstatements that violate GAAP, The Accounting Review, 74, 425, 10.2308/accr.1999.74.4.425 Beneish, 2008, Internal control weaknesses and information uncertainty, The Accounting Review, 83, 665, 10.2308/accr.2008.83.3.665 Bens, 2003, Employee stock options, EPS dilution, and stock repurchases, Journal of Accounting and Economics, 36, 51, 10.1016/j.jacceco.2003.10.006 Bergstresser, 2006, CEO incentives and earnings management, Journal of Financial Economics, 80, 511, 10.1016/j.jfineco.2004.10.011 Bernard, 1989, The nature and amount of information in cash flows and accruals, The Accounting Review, 64, 624 Bhattacharya, 2003, Assessing the relative informativeness and permanence of pro forma earnings and GAAP operating earnings, Journal of Accounting and Economics, 36, 285, 10.1016/j.jacceco.2003.06.001 Bhattacharya, 2003, The world price of earnings opacity, The Accounting Review, 78, 641, 10.2308/accr.2003.78.3.641 Bhojraj, 2007, How does the corporate bond market value capital investments and accruals?, Review of Accounting Studies, 14, 31, 10.1007/s11142-007-9056-x Bhojraj, 2009, Making sense of cents: an examination of firms that marginally miss or beat analyst forecasts, Journal of Finance, 64, 2361, 10.1111/j.1540-6261.2009.01503.x Biddle, 2006, Accounting quality and firm-level capital investment, The Accounting Review, 81, 963, 10.2308/accr.2006.81.5.963 Biddle, 2009, How does financial reporting quality relate to investment efficiency?, Journal of Accounting and Economics, 48, 112, 10.1016/j.jacceco.2009.09.001 Biddle, 1991, The estimation and determinants of associations between returns and earnings: evidence from cross-industry comparisons, Journal of Accounting, Auditing & Finance, 183, 10.1177/0148558X9100600203 Bonner, 1998, Fraud type and auditor litigation: an analysis of SEC accounting and auditing enforcement releases, The Accounting Review, 73, 503 Botosan, 2005, Assessing alternative proxies for the expected risk premium, The Accounting Review, 80, 21, 10.2308/accr.2005.80.1.21 Botosan, 2002, A re-examination of disclosure level and the expected cost of equity capital, Journal of Accounting Research, 40, 21, 10.1111/1475-679X.00037 Bowen, 1986, Evidence on the relationships between earnings and various measures of cash flow, The Accounting Review, 61, 713 Bowen, 1995, Stakeholders’ implicit claims and accounting method choice, Journal of Accounting and Economics, 20, 255, 10.1016/0165-4101(95)00404-1 Bowen, 1981, Determinants of the corporate decision to capitalize interest, Journal of Accounting and Economics, 3, 151, 10.1016/0165-4101(81)90011-2 Bowen, 2008, Accounting discretion, corporate governance, and firm performance, Contemporary Accounting Research, 25, 310, 10.1506/car.25.2.3 Boynton, 1992, Earnings management and the corporate alternative minimum tax, Journal of Accounting Research, 30, 131, 10.2307/2491198 Bradshaw, 2001, Do analysts and auditors use information in accruals?, Journal of Accounting Research, 39, 45, 10.1111/1475-679X.00003 Brav, 2005, Using expectations to test asset pricing models, Financial Management, 34, 31, 10.1111/j.1755-053X.2005.tb00109.x Brown, 1983, Accounting changes and the accuracy of analysts’ earnings forecasts, Journal of Accounting Research, 21, 432, 10.2307/2490783 Brown, 2007, To what extent does the financial reporting process curb earnings surprise games?, Journal of Accounting Research, 45, 947, 10.1111/j.1475-679X.2007.00256.x Brown, 1999, Use of R2 in accounting research: measuring changes in value relevance over the last four decades, Journal of Accounting and Economics, 28, 83, 10.1016/S0165-4101(99)00023-3 Burgstahler, 1997, Earnings management to avoid earnings decreases and losses, Journal of Accounting and Economics, 24, 99, 10.1016/S0165-4101(97)00017-7 Burgstahler, 2003, Earnings management to avoid losses and earnings decrease: are analysts fooled?, Contemporary Accounting Research, 20, 253, 10.1506/BXXP-RGTD-H0PM-9XAL Burgstahler, 2006, The importance of reporting incentives: earnings management in European private and public firms, The Accounting Review, 81, 983, 10.2308/accr.2006.81.5.983 Burgstahler, 2002, Earnings surprise materiality as measured by stock returns, Journal of Accounting Research, 40, 1297, 10.1111/1475-679X.t01-1-00055 Burns, 2006, The impact of performance-based compensation on misreporting, Journal of Financial Economics, 79, 35, 10.1016/j.jfineco.2004.12.003 Bushee, 1998, The influence of institutional investors in myopic R&D investment behavior, The Accounting Review, 73, 305 Bushman, 2004, Financial accounting information, organizational complexity and corporate governance systems, Journal of Accounting and Economics, 37, 167, 10.1016/j.jacceco.2003.09.005 Butler, 2004, An empirical analysis of auditor reporting and its association with abnormal accruals, Journal of Accounting and Economics, 37, 139, 10.1016/j.jacceco.2003.06.004 Cahan, 1992, The effect of antitrust investigations on discretionary accruals: a refined test of the political-cost hypothesis, The Accounting Review, 67, 77 Calegari, 2000, The effect of tax accounting rules on capital structure and discretionary accruals, Journal of Accounting and Economics, 30, 1, 10.1016/S0165-4101(00)00027-6 Callahan, 1997, Accounting information and bid-ask spreads, Accounting Horizons, 11, 50 Caramanis, 2008, Audit effort and earnings management, Journal of Accounting and Economics, 45, 116, 10.1016/j.jacceco.2007.05.002 Cassidy, 1976, Investor evaluation of accounting information: some additional empirical evidence, Journal of Accounting Research, 14, 212, 10.2307/2490541 Chambers, 1956, Some observations on “Structure of accounting theory”, The Accounting Review, 31, 584 Chambers, 1965, Edwards and Bell on business income, The Accounting Review, 40, 731 Chambers, D., 1999. Earnings management and capital market misallocation. Working Paper, Kennesaw State University. Chaney, 1998, The use of accruals in income smoothing: a permanent earnings hypothesis, Advances in Quantitative Analysis of Finance & Accounting, 6, 103 Chang, 2006, CEOs’/CFOs’ swearing by the numbers: does it impact share price of the firm?, The Accounting Review, 81, 1, 10.2308/accr.2006.81.1.1 Chauvin, 2001, Stock price decreases prior to executive stock option grants, Journal of Corporate Finance, 7, 53, 10.1016/S0929-1199(00)00019-5 Chen, 2008, Audit partner tenure, audit firm tenure, and discretionary accruals: does long auditor tenure impair earnings quality?, Contemporary Accounting Research, 25, 447, 10.1506/car.25.2.5 Chen, 1996, Regulatory capital, tax, and earnings management effects on loan loss accruals in the Canadian banking industry, Contemporary Accounting Research, 13, 91, 10.1111/j.1911-3846.1996.tb00493.x Chen, 2007, On the relation between conservatism in accounting standards and incentives for earnings management, Journal of Accounting Research, 45, 541, 10.1111/j.1475-679X.2007.00243.x Chen, 2002, Voluntary disclosure of balance sheet information in quarterly earnings announcements, Journal of Accounting and Economics, 33, 229, 10.1016/S0165-4101(02)00043-5 Cheng, 2008, Earnings restatements, changes in CEO compensation, and firm performance, The Accounting Review, 83, 1217, 10.2308/accr.2008.83.5.1217 Cheng, 2005, Equity incentives and earnings management, The Accounting Review, 80, 441, 10.2308/accr.2005.80.2.441 Choi, 2001, Potential errors in detecting earnings management: reexamining studies investigating the AMT of 1986, Contemporary Accounting Research, 18, 571, 10.1506/16L8-JT2V-RUTP-MBPE Christensen, 2005, A contracting perspective on earnings quality, Journal of Accounting and Economics, 39, 265, 10.1016/j.jacceco.2004.06.002 Christie, 1990, Aggregation of test statistics: an evaluation of the evidence on contracting and size hypotheses, Journal of Accounting and Economics, 12, 15, 10.1016/0165-4101(90)90039-7 Christie, 1994, Efficient and opportunistic choices of accounting procedures: corporate control, The Accounting Review, 69, 539 Cronbach, 1955, Construct validity in psychological tests, Psychological Bulletin, 52, 281, 10.1037/h0040957 Chung, 2003, Client importance, nonaudit services, and abnormal accruals, The Accounting Review, 78, 931, 10.2308/accr.2003.78.4.931 Chung, 2008, Managerial legal liability coverage and earnings conservatism, Journal of Accounting and Economics, 46, 135, 10.1016/j.jacceco.2008.03.002 Cohen, 2008, Real and accrual-based earnings management in the pre- and post-Sarbanes-Oxley periods, The Accounting Review, 83, 757, 10.2308/accr.2008.83.3.757 Coles, 2006, Earnings management around employee stock option reissues, Journal of Accounting and Economics, 41, 173, 10.1016/j.jacceco.2005.08.002 Collins, 1990, Accounting information and corporate governance: market and analyst reactions to earnings of firms engaged in proxy contests, Journal of Accounting and Economics, 13, 213, 10.1016/0165-4101(90)90032-Y Collins, 2003, Investor sophistication and the mispricing of accruals, Review of Accounting Studies, 8, 251, 10.1023/A:1024417513085 Collins, 1994, Lack of timeliness and noise as explanations for the low contemporaneous return-earnings association, Journal of Accounting and Economics, 18, 289, 10.1016/0165-4101(94)90024-8 Collins, 2007, What drives the increased informativeness of earnings announcements over time?, Review of Accounting Studies, 14, 1, 10.1007/s11142-007-9055-y Collins, 1997, Changes in the value-relevance of earnings and book values over the past forty years, Journal of Accounting and Economics, 24, 39, 10.1016/S0165-4101(97)00015-3 Collins, 1993, Noisy accounting earnings signals and earnings response coefficients: the case of foreign currency accounting, Contemporary Accounting Research, 10, 119, 10.1111/j.1911-3846.1993.tb00385.x Collins, 1989, An analysis of the cross-sectional and intertemporal determinants of earnings response coefficients, Journal of Accounting and Economics, 11, 143, 10.1016/0165-4101(89)90004-9 Core, 2003, Market valuations in the new economy: an investigation of what has changed, Journal of Accounting and Economics, 34, 43, 10.1016/S0165-4101(02)00087-3 Core, 2008, Is accruals quality a priced risk factor?, Journal of Accounting and Economics, 46, 2, 10.1016/j.jacceco.2007.08.001 Core, 1999, The effect of accounting-based debt covenants on equity valuation, Journal of Accounting and Economics, 27, 1, 10.1016/S0165-4101(98)00043-3 Cuccia, 1995, The ability of professional standards to mitigate aggressive reporting, The Accounting Review, 70, 227 Cushing, 1974, A mathematical approach to the analysis and design of internal control systems, The Accounting Review, 49, 24 Daines, 1929, The changing objectives of accounting, The Accounting Review, 4, 94 Daley, 1983, The effects of debt covenants and political costs on the choice of accounting methods: the case of accounting for R&D costs, Journal of Accounting and Economics, 5, 195, 10.1016/0165-4101(83)90012-5 Darrough, 2005, Do insiders manipulate earnings when they sell their shares in an initial public offering?, Journal of Accounting Research, 43, 1, 10.1111/j.1475-679x.2004.00161.x Das, 2003, Rounding-up in reported EPS, behavioral thresholds, and earnings management, Journal of Accounting and Economics, 35, 31, 10.1016/S0165-4101(02)00096-4 Dascher, 1970, A note on income smoothing in the chemical industry, Journal of Accounting Research, 8, 253, 10.2307/2490110 DeAngelo, 1994, Accounting choice in troubled companies, Journal of Accounting and Economics, 17, 113, 10.1016/0165-4101(94)90007-8 DeAngelo, 1981, Auditor independence, ‘low balling’, and disclosure regulation, Journal of Accounting and Economics, 3, 113, 10.1016/0165-4101(81)90009-4 DeAngelo, 1986, Accounting numbers as market valuation substitutes: a study of management buyouts of public stockholders, The Accounting Review, 61, 400 DeAngelo, 1988, Managerial competition, information costs, and corporate governance: the use of accounting performance measures in proxy contests, Journal of Accounting and Economics, 10, 3, 10.1016/0165-4101(88)90021-3 Dechow, 1994, Accounting earnings and cash flows as measures of firm performance: the role of accounting accruals, Journal of Accounting and Economics, 18, 3, 10.1016/0165-4101(94)90016-7 Dechow, 2002, The quality of accruals and earnings: the role of accrual estimation errors, The Accounting Review, 77, 35, 10.2308/accr.2002.77.s-1.35 Dechow, 2006, The persistence of earnings and cash flows and the role of special items: implications for the accrual anomaly, Review of Accounting Studies, 11, 253, 10.1007/s11142-006-9004-1 Dechow, P., Ge, W., Larson, C., Sloan, R. Predicting material accounting misstatements. Contemporary Accounting Research, forthcoming. Dechow, 1994, The effect of restructuring charges on executives’ cash compensation, The Accounting Review, 69, 138 Dechow, 1998, The relation between earnings and cash flows, Journal of Accounting and Economics, 25, 133, 10.1016/S0165-4101(98)00020-2 Dechow, P., Myers, L., Shakespeare, C., 2009. Fair value accounting and gains from asset securitizations: a convenient earnings management tool with compensation side-benefits. Working Paper, University of Michigan, University of California, Berkeley, and University of Arkansas. Dechow, 2008, The persistence and pricing of the cash component of earnings, Journal of Accounting Research, 46, 537, 10.1111/j.1475-679X.2008.00283.x Dechow, 2003, Why are earnings kinky? An examination of the earnings management explanation, Review of Accounting Studies, 8, 355, 10.1023/A:1024481916719 Dechow, 2004 Dechow, 2000, Earnings management: reconciling the views of accounting academics, practitioners, and regulators, Accounting Horizons, 14, 232, 10.2308/acch.2000.14.2.235 Dechow, 1991, Executive incentives and the horizon problem: an empirical investigation, Journal of Accounting and Economics, 14, 51, 10.1016/0167-7187(91)90058-S Dechow, 1995, Detecting earnings management, The Accounting Review, 70, 193 Dechow, 1996, Causes and consequences of earnings manipulation: an analysis of firms subject to enforcement actions by the SEC, Contemporary Accounting Research, 13, 1, 10.1111/j.1911-3846.1996.tb00489.x DeFond, M., 2010. Discussion of: “Understanding earnings quality: a review of the proxies, their determinants and their consequences”. Journal of Accounting and Economics, forthcoming. DeFond, 2007, Investor protection and the information content of annual earnings announcements: international evidence, Journal of Accounting and Economics, 43, 37, 10.1016/j.jacceco.2006.09.001 DeFond, 1994, Debt covenant violation and manipulation of accruals, Journal of Accounting and Economics, 17, 145, 10.1016/0165-4101(94)90008-6 DeFond, 1997, Smoothing income in anticipation of future earnings, Journal of Accounting and Economics, 23, 115, 10.1016/S0165-4101(97)00004-9 DeFond, 2001, The reversal of abnormal accruals and the market valuation of earnings surprises, The Accounting Review, 76, 375, 10.2308/accr.2001.76.3.375 DeFond, 1998, Auditor changes and discretionary accruals, Journal of Accounting and Economics, 25, 35, 10.1016/S0165-4101(98)00018-4 Degeorge, 1999, Earnings management to exceed thresholds, Journal of Business, 72, 1, 10.1086/209601 Demski, 1973, Rational choice of accounting method for a class of partnership, Journal of Accounting Research, 11, 176, 10.2307/2490188 Demski, 1998, Performance measure manipulation, Contemporary Accounting Research, 15, 261, 10.1111/j.1911-3846.1998.tb00560.x Desai, 2006, The reputational penalty for aggressive accounting: earnings restatements and management turnover, The Accounting Review, 81, 83, 10.2308/accr.2006.81.1.83 Desai, 2006, Do short sellers target firms with poor earnings quality? Evidence from earnings restatements, Review of Accounting Studies, 11, 71, 10.1007/s11142-006-6396-x Desai, 2004, Value-glamour and accrual mispricing: one anomaly or two?, The Accounting Review, 79, 355, 10.2308/accr.2004.79.2.355 Dhaliwal, 1991, The association between unexpected earnings and abnormal security returns in the presence of financial leverage, Contemporary Accounting Research, 8, 20, 10.1111/j.1911-3846.1991.tb00832.x Dhaliwal, 2004, Last-chance earnings management: using the tax expense to meet analysts’ forecasts, Contemporary Accounting Research, 21, 431, 10.1506/TFVV-UYT1-NNYT-1YFH Dhaliwal, 1982, The effect of owner versus management control on the choice of accounting methods, Journal of Accounting and Economics, 4, 41, 10.1016/0165-4101(82)90005-2 Dharan, 1987, The effect of sales and collection disclosures on cash flow forecasting and income smoothing, Contemporary Accounting Research, 3, 445, 10.1111/j.1911-3846.1987.tb00649.x Dharan, 1993, The valuation consequence of accounting changes: a multi-year examination, Journal of Accounting, Auditing and Finance, 8, 475, 10.1177/0148558X9300800407 Dichev, 2002, Large-sample evidence on the debt covenant hypothesis, Journal of Accounting Research, 40, 1091, 10.1111/1475-679X.00083 Dichev, 2008, Matching and the changing properties of accounting earnings over the last 40 years, The Accounting Review, 83, 1425, 10.2308/accr.2008.83.6.1425 Dietrich, 2000, The reliability of investment property fair value estimates, Journal of Accounting and Economics, 30, 125, 10.1016/S0165-4101(01)00002-7 Dietrich, 2007, Asymmetric timeliness tests of accounting conservatism, Review of Accounting Studies, 12, 95, 10.1007/s11142-006-9023-y Dontoh, 2004, The declining value-relevance of accounting information and non-information-based trading: an empirical analysis, Contemporary Accounting Research, 21, 795, 10.1506/J6P4-2UYP-HFXY-RBT1 Dopuch, 1988, Evidence on the choice of inventory accounting methods: LIFO versus FIFO, Journal of Accounting Research, 26, 28, 10.2307/2491112 Doyle, 2007, Accruals quality and internal control over financial reporting, The Accounting Review, 82, 1141, 10.2308/accr.2007.82.5.1141 Doyle, 2007, Determinants of weaknesses in internal control over financial reporting, Journal of Accounting and Economics, 44, 193, 10.1016/j.jacceco.2006.10.003 Ducharme, 2004, Earnings management, stock issues, and shareholder lawsuits, Journal of Financial Economics, 71, 27, 10.1016/S0304-405X(03)00182-X Durtschi, 2005, Earnings management? The shapes of the frequency distributions of earnings metrics are not evidence ipso facto, Journal of Accounting Research, 43, 557, 10.1111/j.1475-679X.2005.00182.x Durtschi, 2009, Earnings management? Erroneous inference based on earnings frequency distributions, Journal of Accounting Research, 47, 1249, 10.1111/j.1475-679X.2009.00347.x Dutta, 2005, Accrual accounting for performance evaluation, Review of Accounting Studies, 10, 527, 10.1007/s11142-005-4213-6 Dye, 1988, Earnings management in an overlapping generations model, Journal of Accounting Research, 26, 195, 10.2307/2491102 Dye, 1995, Discretion vs. uniformity: choices among GAAP, The Accounting Review, 70, 389 Easley, 2004, Information and the cost of capital, Journal of Finance, 59, 1553, 10.1111/j.1540-6261.2004.00672.x Easton, 2005, An evaluation of accounting-based measures of expected returns, The Accounting Review, 80, 501, 10.2308/accr.2005.80.2.501 Easton, 1989, Cross-sectional variation in the stock market response to the announcement of accounting earnings, Journal of Accounting and Economics, 9, 117, 10.1016/0165-4101(89)90003-7 Ecker, 2006, A returns-based representation of earnings quality, The Accounting Review, 81, 749, 10.2308/accr.2006.81.4.749 Efendi, 2007, Why do corporate managers misstate financial statements? The role of option compensation and other factors, Journal of Financial Economics, 85, 667, 10.1016/j.jfineco.2006.05.009 Elgers, 2003, Anticipatory income smoothing: a re-examination, Journal of Accounting and Economics, 35, 405, 10.1016/S0165-4101(03)00039-9 Elliott, 1990, Accounting changes and earnings predictability, The Accounting Review, 65, 157 Engel, 2003, CEO turnover and properties of accounting information, Journal of Accounting and Economics, 36, 197, 10.1016/j.jacceco.2003.08.001 Erickson, 2006, Is there a link between executive equity incentives and accounting fraud?, Journal of Accounting Research, 44, 113, 10.1111/j.1475-679X.2006.00194.x Erickson, 1999, Earnings management by acquiring firms in stock for stock mergers, Journal of Accounting and Economics, 27, 149, 10.1016/S0165-4101(99)00008-7 Evans, 1996, Multiple control systems, accrual accounting, and earnings management, Journal of Accounting Research, 34, 45, 10.2307/2491331 Ewert, R., Wagenhofer, A., 2010, Earnings quality metrics and what they measure. Working Paper, University of Graz. Fairfield, 2001, Using asset turnover and profit margin to forecast changes in profitability, Review of Accounting Studies, 6, 371, 10.1023/A:1012430513430 Fairfield, 2003, Accrued earnings and growth: implications for future profitability and market mispricing, The Accounting Review, 78, 353, 10.2308/accr.2003.78.1.353 Fairfield, 1996, Accounting classification and the predictive content of earnings, Accounting Review, 71, 337 Fan, 2002, Corporate ownership structure and the informativeness of accounting earnings in East Asia, Journal of Accounting and Economics, 33, 401, 10.1016/S0165-4101(02)00047-2 Farber, 2005, Restoring trust after fraud: does corporate governance matter?, The Accounting Review, 80, 539, 10.2308/accr.2005.80.2.539 Feng, M., Ge, W., Luo, S., Shevlin, T. Why do CFOs become involved in material accounting manipulations? Journal of Accounting and Economics, in press, doi:10.1016/j.jacceco.2010.09.005. Ferguson, 2004, Nonaudit services and earnings management: UK evidence, Contemporary Accounting Research, 21, 813, 10.1506/MFV5-9T3Q-H5RK-VC20 Feroz, 1991, The financial and market effects of the SEC’s accounting and auditing enforcement releases, Journal of Accounting Research, 29, 107, 10.2307/2491006 Fields, 2001, Empirical research on accounting choice, Journal of Accounting and Economics, 31, 255, 10.1016/S0165-4101(01)00028-3 Finger, 1994, The ability of earnings to predict future earnings and cash flows, Journal of Accounting Research, 32, 210, 10.2307/2491282 Fischer, 2000, Reporting bias, The Accounting Review, 75, 229, 10.2308/accr.2000.75.2.229 Fisher, 1907 Fisher, 1930 Foster, 1977, Quarterly accounting data: time-series properties and predictive ability results, The Accounting Review, 52, 1 Francis, 1996, Causes and effects of discretionary asset write-offs, Journal of Accounting Research, 34, 117, 10.2307/2491429 Francis, 2006, Disclosure of fees paid to auditors and the market valuation of earnings surprises, Review of Accounting Studies, 11, 495, 10.1007/s11142-006-9014-z Francis, 1999, Accounting accruals and auditor reporting conservatism, Contemporary Accounting Research, 16, 135, 10.1111/j.1911-3846.1999.tb00577.x Francis, 2004, Costs of equity and earnings attributes, The Accounting Review, 79, 967, 10.2308/accr.2004.79.4.967 Francis, 2005, The market pricing of accruals quality, Journal of Accounting and Economics, 39, 295, 10.1016/j.jacceco.2004.06.003 Francis, 1999, The role of Big 6 auditors in the credible reporting of accruals, Auditing, 18, 17, 10.2308/aud.1999.18.2.17 Francis, 2008, Voluntary disclosure, earnings quality, and cost of capital, Journal of Accounting Research, 46, 53, 10.1111/j.1475-679X.2008.00267.x Francis, 2006, Earnings quality, Foundation and Trends in Accounting, 1, 259, 10.1561/1400000004 Francis, 1999, Have financial statements lost their relevance?, Journal of Accounting Research, 37, 319, 10.2307/2491412 Francis, 2002, Earnings announcements and competing information, Journal of Accounting and Economics, 33, 313, 10.1016/S0165-4101(02)00058-7 Francis, 2002, Expanded disclosures and the increased usefulness of earnings announcements, The Accounting Review, 77, 515, 10.2308/accr.2002.77.3.515 Francis, 2005, Earnings and dividend informativeness when cash flow rights are separated from voting rights, Journal of Accounting and Economics, 39, 329, 10.1016/j.jacceco.2005.01.001 Francis, 2008, The joint effect of investor protection and Big 4 audits on earnings quality around the world, Contemporary Accounting Research, 25, 157, 10.1506/car.25.1.6 Frankel, 2002, The relation between auditors’ fees for nonaudit services and earnings management, The Accounting Review, 77, 71, 10.2308/accr.2002.77.s-1.71 Frankel, 1998, Accounting valuation, market expectation, and cross-sectional stock returns, Journal of Accounting and Economics, 25, 283, 10.1016/S0165-4101(98)00026-3 Friedlan, 1994, Accounting choices of issuers of initial public offerings, Contemporary Accounting Research, 11, 1, 10.1111/j.1911-3846.1994.tb00434.x Frost, 2006, Stock exchange disclosure and market development: an analysis of 50 international exchanges, Journal of Accounting Research, 44, 437, 10.1111/j.1475-679X.2006.00208.x García Lara, 2009, Accounting conservatism and corporate governance, Review of Accounting Studies, 14, 161, 10.1007/s11142-007-9060-1 Gaver, 1998, The relation between nonrecurring accounting transactions and CEO cash compensation, The Accounting Review, 73, 235 Gaver, 1995, Additional evidence on bonus plans and income management, Journal of Accounting and Economics, 19, 3, 10.1016/0165-4101(94)00358-C Gaver, 1999, Managing insurance company financial statements to meet regulatory and tax reporting goals, Contemporary Accounting Research, 16, 207, 10.1111/j.1911-3846.1999.tb00579.x Gaver, 2001, The association between external monitoring and earnings management in the property-casualty insurance industry, Journal of Accounting Research, 39, 269, 10.1111/1475-679X.00012 Ge, W., 2007. Off-balance-sheet activities, earnings persistence and stock prices: evidence from operating leases. Working Paper, University of Washington. Ge, 2005, The disclosure of material weaknesses in internal control after the Sarbanes-Oxley Act, Accounting Horizons, 19, 137, 10.2308/acch.2005.19.3.137 Geiger, 2008, The hiring of accounting and finance officers from audit firms: how did the market react?, Review of Accounting Studies, 13, 55, 10.1007/s11142-007-9047-y Geiger, 2006, Does hiring a new CFO change things? An investigation of changes in discretionary accruals, The Accounting Review, 81, 781, 10.2308/accr.2006.81.4.781 Gigler, 2001, Conservatism, optimal disclosure policy, and the timeliness of financial reports, The Accounting Review, 76, 471, 10.2308/accr.2001.76.4.471 Givoly, 2000, The changing time-series properties of earnings, cash flows and accruals: has financial reporting become more conservative?, Journal of Accounting and Economics, 29, 287, 10.1016/S0165-4101(00)00024-0 Givoly, 2010, Does public ownership of equity improve earnings quality?, The Accounting Review, 85, 195, 10.2308/accr.2010.85.1.195 Givoly, 2007, Measuring reporting conservatism, The Accounting Review, 82, 65, 10.2308/accr.2007.82.1.65 Gleason, 2008, The contagion effects of accounting restatements, The Accounting Review, 83, 83, 10.2308/accr.2008.83.1.83 Gleason, 2008, Evidence of differing market responses to beating analysts’ targets through tax expense decreases, Review of Accounting Studies, 13, 295, 10.1007/s11142-007-9066-8 Gonedes, 1969, The significance of selected accounting procedures: a statistical test, Journal of Accounting Research, 7, 90, 10.2307/2489893 Gong, 2008, Earnings management, lawsuits, and stock-for-stock acquirers’ market performance, Journal of Accounting and Economics, 46, 62, 10.1016/j.jacceco.2008.03.001 Graham, 1934 Graham, 2008, Corporate misreporting and bank loan contracting, Journal of Financial Economics, 88, 44, 10.1016/j.jfineco.2007.08.005 Green, J., Hand, J., Soliman, M., 2010. Going, going, gone? The death of the US accruals anomaly. Working Paper, UNC and University of Washington. Greenberg, 1986, Earnings versus cash flow as a predictor of future cash flow measures, Journal of Accounting, Auditing, and Finance, 1, 266, 10.1177/0148558X8600100402 Griffin, 1977, The time-series behavior of quarterly earnings: preliminary evidence, Journal of Accounting Research, 15, 71, 10.2307/2490556 Guay, 1996, A market-based evaluation of discretionary accrual models, Journal of Accounting Research, 34, 83, 10.2307/2491427 Guenther, 1994, Earnings management in response to corporate tax rate changes: evidence from the 1986 Tax Reform Act, The Accounting Review, 69, 230 Guenther, 1997, Financial reporting, tax costs, and book-tax conformity, Journal of Accounting and Economics, 23, 225, 10.1016/S0165-4101(97)00009-8 Guenther, 2000, The association between financial accounting measures and real economic activity: a multinational study, Journal of Accounting and Economics, 29, 53, 10.1016/S0165-4101(00)00013-6 Guidry, 1999, Earnings-based bonus plans and earnings management by business-unit managers, Journal of Accounting and Economics, 26, 113, 10.1016/S0165-4101(98)00037-8 Guiso, 2009, Cultural biases in economic exchange? Quarterly Journal of Economics, 124, 1095 Gul, 2007, The differential effects of auditors’ nonaudit and audit fees on accrual quality, Contemporary Accounting Research, 24, 595, 10.1506/ARJ4-20P3-201K-3752 Gul, 2003, Discretionary accounting accruals, managers’ incentives, and audit fees, Contemporary Accounting Research, 20, 441, 10.1506/686E-NF2J-73X6-G540 Hackenbrack, 2002, Market response to earnings surprises conditional on reasons for an auditor change, Contemporary Accounting Research, 19, 195, 10.1506/5XW7-9CY6-LLJY-BA2F Hagerman, 1979, Some economic determinants of accounting policy choice, Journal of Accounting and Economics, 1, 141, 10.1016/0165-4101(79)90004-1 Hall, 1997, Damage awards and earnings management in the oil industry, The Accounting Review, 72, 47 Hammersley, 2008, Market reactions to the disclosure of internal control weaknesses and to the characteristics of those weaknesses under Section 302 of the Sarbanes Oxley Act of 2002, Review of Accounting Studies, 13, 141, 10.1007/s11142-007-9046-z Han, 1998, Political costs and earnings management of oil companies during the 1990 Persian Gulf crisis, The Accounting Review, 73, 103 Hand, 1989, Did firms undertake debt-equity swaps for an accounting paper profit or true financial gain?, The Accounting Review, 64, 587 Hanlon, M., Heitzman, S., 2010. A review of tax research. Working Paper, MIT, University of Oregon. Hanlon, 2005, Evidence for the possible information loss of conforming book income and taxable income, Journal of Law and Economics, 48, 407, 10.1086/497525 Hanlon, 2008, An unintended consequence of book-tax conformity: a loss of earnings informativeness, Journal of Accounting and Economics, 46, 294, 10.1016/j.jacceco.2008.09.003 Haw, 2004, Ultimate ownership, income management, and legal and extra-legal institutions, Journal of Accounting Research, 42, 423, 10.1111/j.1475-679X.2004.00144.x Haw, 2005, Market consequences of earnings management in response to security regulations in China, Contemporary Accounting Research, 22, 95, 10.1506/9XVL-P6RR-MTPX-VU8K Hayn, 1995, The information content of losses, Journal of Accounting and Economics, 20, 125, 10.1016/0165-4101(95)00397-2 Healy, 1985, The effect of bonus schemes on accounting decisions, Journal of Accounting and Economics, 7, 85, 10.1016/0165-4101(85)90029-1 Healy, 2002, R&D accounting and the tradeoff between relevance and objectivity, Journal of Accounting Research, 40, 677, 10.1111/1475-679X.00067 Healy, 1999, A review of the earnings management literature and its implications for standard setting, Accounting Horizons, 13, 365, 10.2308/acch.1999.13.4.365 Hennes, 2008, The importance of distinguishing errors from irregularities in restatement research: the case of restatements and CEO/CFO turnover, The Accounting Review, 83, 1487, 10.2308/accr.2008.83.6.1487 Heron, R., Lie, E., 2006. What fraction of stock option grants to top executives have been manipulated or backdated? Working Paper, Indiana University and University of Iowa. Herrmann, 2003, The sale of assets to manage earnings in Japan, Journal of Accounting Research, 41, 89, 10.1111/1475-679X.00097 Hirshleifer, 2003, Limited attention, information disclosure, and financial reporting, Journal of Accounting and Economics, 36, 337, 10.1016/j.jacceco.2003.10.002 Hirst, 1994, Auditor sensitivity to earnings management, Contemporary Accounting Research, 11, 405, 10.1111/j.1911-3846.1994.tb00449.x Hirst, 1998, Comprehensive income reporting and analysts’ valuation judgments, Journal of Accounting Research, 36, 47, 10.2307/2491306 Hogan, 2008, Evidence on the audit risk model: do auditors increase audit fees in the presence of internal control deficiencies?, Contemporary Accounting Research, 25, 219, 10.1506/car.25.1.9 Hoitash, R., Krishnan, M., Sankaraguruswamy, S., 2002. Earnings quality and price quality. Working Paper, Bentley University, National University of Singapore, and Yeshiva University. Holthausen, 1995, Annual bonus schemes and the manipulation of earnings, Journal of Accounting and Economics, 19, 29, 10.1016/0165-4101(94)00376-G Holthausen, 1988, The effect of sequential information releases on the variance of price changes in an intertemporal multi-asset market, Journal of Accounting Research, 26, 82, 10.2307/2491114 Hribar, 2002, Errors in estimating accruals: implications for empirical research, Journal of Accounting Research, 40, 105, 10.1111/1475-679X.00041 Hribar, 2004, The effect of accounting restatements on earnings revisions and the estimated cost of capital, Review of Accounting Studies, 9, 337, 10.1023/B:RAST.0000028194.11371.42 Hribar, 2006, Stock repurchases as an earnings management device, Journal of Accounting and Economics, 41, 3, 10.1016/j.jacceco.2005.10.002 Hughes, J., Liu, J., Liu, J. 2005. Information, diversification, and cost of capital. Working Paper, UCLA. Hung, 2000, Accounting standards and value relevance of financial statements: an international analysis, Journal of Accounting and Economics, 30, 401, 10.1016/S0165-4101(01)00011-8 Hunt, 1985, Potential determinants of corporate inventory accounting decisions, Journal of Accounting Research, 23, 448, 10.2307/2490820 Hunt, 1996, Managing interacting accounting measures to meet multiple objectives: a study of LIFO firms, Journal of Accounting and Economics, 21, 339, 10.1016/0165-4101(96)00422-3 Imhoff, 2003, Accounting quality, auditing, and corporate governance, Accounting Horizons, 17, 117, 10.2308/acch.2003.17.s-1.117 Imhoff, 1992, The effect of ex ante earnings uncertainty on earnings response coefficients, The Accounting Review, 67, 427 Jacob, 2007, Earnings management and accounting income aggregation, Journal of Accounting and Economics, 43, 369, 10.1016/j.jacceco.2007.01.007 Jackson, 2009, Economic consequences of firms’ depreciation method choice: evidence from capital investments, Journal of Accounting and Economics, 48, 54, 10.1016/j.jacceco.2009.06.001 Jayaraman, 2008, Earnings volatility, cash flow volatility, and informed trading, Journal of Accounting Research, 46, 809, 10.1111/j.1475-679X.2008.00293.x Jensen, 1976, Theory of the firm: managerial behavior, agency costs and ownership structure, Journal of Financial Economics, 3, 305, 10.1016/0304-405X(76)90026-X Jo, 2007, Underwriter choice and earnings management: evidence from seasoned equity offerings, Review of Accounting Studies, 12, 23, 10.1007/s11142-006-9019-7 Joe, 2007, Do auditor-provided nonaudit services improve audit effectiveness?, Contemporary Accounting Research, 24, 467, 10.1506/Y6H1-7895-774T-5TM1 Johnson, 1999, Business cycles and the relation between security returns and earnings, Review of Accounting Studies, 4, 93, 10.1023/A:1009649018325 Johnson, 2009, Managerial incentives and corporate fraud: the sources of incentives matter, Review of Finance, 13, 115, 10.1093/rof/rfn014 Johnson, 2002, Audit-firm tenure and the quality of financial reports, Contemporary Accounting Research, 19, 637, 10.1506/LLTH-JXQV-8CEW-8MXD Johnson, 1988, Discretionary accounting changes from “successful efforts” to “full cost” methods: 1970–76, The Accounting Review, 63, 96 Johnston, 2005, Earnings management to minimize Superfund clean-up and transaction costs, Contemporary Accounting Research, 22, 617, 10.1506/CXBY-2NXT-DVWC-2TJR Jones, 1991, Earnings management during import relief investigations, Journal of Accounting Research, 29, 193, 10.2307/2491047 Jones, 2008, Do models of discretionary accruals detect actual cases of fraudulent and restated earnings? An empirical analysis, Contemporary Accounting Research, 25, 499, 10.1506/car.25.2.8 Jorion, 2007, Tightening credit standards: the role of accounting quality, Review of Accounting Studies, 14, 1 Jung, 1989, Strategic choice of inventory accounting methods, Contemporary Accounting Research, 6, 1, 10.1111/j.1911-3846.1989.tb00742.x Kanagaretnam, 2004, Joint tests of signaling and income smoothing through bank loan loss provisions, Contemporary Accounting Research, 21, 843, 10.1506/UDWQ-R7B1-A684-9ECR Karpoff, 2008, The consequences to managers for financial misrepresentation, Journal of Financial Economics, 88, 193, 10.1016/j.jfineco.2007.06.003 Karpoff, 2008, The cost to firms of cooking the books, Journal of Financial and Quantitative Analysis, 43, 581, 10.1017/S0022109000004221 Kasznik, 1999, On the association between voluntary disclosure and earnings management, Journal of Accounting Research, 37, 57, 10.2307/2491396 Kasznik, 2004, Discussion of “The effect of accounting restatements on earnings revisions and the estimated cost of capital”, Review of Accounting Studies, 9, 357, 10.1023/B:RAST.0000028195.61508.b6 Kasznik, 2002, Does meeting earnings expectations matter? Evidence from analyst forecast revisions and share prices, Journal of Accounting Research, 40, 727, 10.1111/1475-679X.00069 Keating, 1999, Depreciation-policy changes: tax, earnings management, and investment opportunity incentives, Journal of Accounting and Economics, 28, 359, 10.1016/S0165-4101(00)00004-5 Kerstein, 2007, Intra-year shifts in the earnings distribution and their implications for earnings management, Journal of Accounting and Economics, 44, 399, 10.1016/j.jacceco.2007.04.004 Key, 1997, Political cost incentives for earnings management in the cable television industry, Journal of Accounting and Economics, 23, 309, 10.1016/S0165-4101(97)00012-8 Khan, 2008, Are accruals mispriced? Evidence from tests of an intertemporal capital asset pricing model, Journal of Accounting and Economics, 45, 55, 10.1016/j.jacceco.2007.07.001 Khurana, 2006, Do investors care about the auditor's economic dependence on the client?, Contemporary Accounting Research, 23, 977, 10.1506/D171-8534-4458-K037 Kim, 2006, Ownership structure, business group affiliation, listing status, and earnings management: evidence from Korea, Contemporary Accounting Research, 23, 427, 10.1506/7T5B-72FV-MHJV-E697 Kim, 1990, Analysts’ use of managerial bonus incentives in forecasting earnings, Journal of Accounting and Economics, 13, 3, 10.1016/0165-4101(90)90065-C Kim, 1998, The impact of the 1989 change in bank capital standards on loan loss provisions and loan write-offs, Journal of Accounting and Economics, 25, 69, 10.1016/S0165-4101(98)00015-9 Kim, 2005, The ability of earnings to predict future operating cash flows has been increasing—not decreasing, Journal of Accounting Research, 43, 753, 10.1111/j.1475-679X.2005.00189.x Kim, 2003, Auditor conservatism, asymmetric monitoring, and earnings management, Contemporary Accounting Research, 20, 323, 10.1506/J29K-MRUA-0APP-YJ6V Kinney, 1975, A decision-theory approach to the sampling problem in auditing, Journal of Accounting Research, 13, 117, 10.2307/2490651 Kinney, 2000, Research opportunities in internal control quality and quality assurance, Auditing, 19, 83, 10.2308/aud.2000.19.s-1.83 Kinney, 1989, Characteristics of firms correcting previously reported quarterly earnings, Journal of Accounting and Economics, 11, 71, 10.1016/0165-4101(89)90014-1 Kinney, 2004, Auditor independence, non-audit services, and restatements: was the U.S. government right?, Journal of Accounting Research, 42, 561, 10.1111/j.1475-679X.2004.t01-1-00141.x Kirschenheiter, 2002, Can “big bath” and earnings smoothing co-exist as equilibrium financial reporting strategies?, Journal of Accounting Research, 40, 761, 10.1111/1475-679X.00070 Klassen, 1993, Geographic income shifting by multinational corporations in response to tax rate changes, Journal of Accounting Research, 31, 141, 10.2307/2491168 Klein, 2002, Audit committee, board of director characteristics, and earnings management, Journal of Accounting and Economics, 33, 375, 10.1016/S0165-4101(02)00059-9 Koh, 2008, Meeting or beating analyst expectations in the post-scandals world: changes in stock market rewards and managerial actions, Contemporary Accounting Research, 25, 1067, 10.1506/car.25.4.5 Kormendi, 1987, Earnings innovations, earnings persistence, and stock returns, Journal of Business, 60, 323, 10.1086/296400 Kose, J., Kedia, S., 2006. Design of corporate governance: role of ownership structure, takeovers, and bank debt. Working Paper, New York University. Kothari, 2005, Performance matched discretionary accrual measures, Journal of Accounting and Economics, 39, 163, 10.1016/j.jacceco.2004.11.002 Kothari, S., Ramanna, K., Skinner, D., 2010. Implications for GAAP from an analysis of positive research in accounting. Working Paper, Harvard Business School, MIT, University of Chicago. Kraft, 2006, An analysis of the theories and explanations offered for the mispricing of accruals and accrual components, Journal of Accounting Research, 44, 297, 10.1111/j.1475-679X.2006.00202.x Kravet, 2010, Accounting restatements and information risk, Review of Accounting Studies, 15, 264, 10.1007/s11142-009-9103-x Krishnan, 2003, Does Big 6 auditor industry expertise constrain earnings management?, Accounting Horizons, 17, 1, 10.2308/acch.2003.17.s-1.1 Krishnan, 2005, Audit committee quality and internal control: an empirical analysis, The Accounting Review, 80, 649, 10.2308/accr.2005.80.2.649 LaBelle, 1990, Bond covenants and changes in accounting policy: Canadian evidence, Contemporary Accounting Research, 6, 677, 10.1111/j.1911-3846.1990.tb00781.x LaFond, R., 2005. Is the accrual anomaly a global anomaly?. Working Paper, Massachusetts Institute of Technology. LaFond, 2008, Managerial ownership and accounting conservatism, Journal of Accounting Research, 46, 101, 10.1111/j.1475-679X.2008.00268.x Lambert, 1984, Income smoothing as rational equilibrium behavior, The Accounting Review, 59, 604 Lambert, 2007, Accounting information, disclosure, and the cost of capital, Journal of Accounting Research, 45, 385, 10.1111/j.1475-679X.2007.00238.x Landsman, 2002, Has the information content of quarterly earnings announcements declined in the past three decades?, Journal of Accounting Research, 40, 797, 10.1111/1475-679X.00071 Landsman, 2008, Are securitization transactions really off balance sheet? The Accounting Review, 83, 1251 Lang, 2006, Earnings management and cross listing: are reconciled earnings comparable to US earnings?, Journal of Accounting and Economics, 42, 255, 10.1016/j.jacceco.2006.04.005 Lang, 2003, How representative are firms that are cross-listed in the United States? An analysis of accounting quality, Journal of Accounting Research, 41, 363, 10.1111/1475-679X.00108 La Porta, 2006, What works in securities laws, Journal of Finance, 61, 1, 10.1111/j.1540-6261.2006.00828.x Larcker, 2004, Fees paid to audit firms, accrual choices, and corporate governance, Journal of Accounting Research, 42, 625, 10.1111/j.1475-679X.2004.t01-1-00143.x Larcker, 2007, Corporate governance, accounting outcomes, and organizational performance, The Accounting Review, 82, 963, 10.2308/accr.2007.82.4.963 Lee, 1985, Choice of inventory accounting methods: comparative analyses of alternative hypotheses, Journal of Accounting Research, 23, 468, 10.2307/2490821 Lee, 2006, Performance, growth and earnings management, Review of Accounting Studies, 11, 305, 10.1007/s11142-006-9009-9 Lee, K., 2010. Purchase obligations, earnings persistence and stock returns. Working Paper, The University of California, Berkeley. Lennox, 2006, The informativeness of earnings and management's issuance of earnings forecasts, Journal of Accounting and Economics, 42, 439, 10.1016/j.jacceco.2006.05.001 Leuz, 2003, Earnings management and investor protection: an international comparison, Journal of Financial Economics, 69, 505, 10.1016/S0304-405X(03)00121-1 Lev, 1983, Some economic determinants of time-series properties of earnings, Journal of Accounting and Economics, 5, 31, 10.1016/0165-4101(83)90004-6 Lev, 1989, On the usefulness of earnings and earnings research: lessons and directions from two decades of empirical research, Journal of Accounting Research, 27, 153, 10.2307/2491070 Lev, 2008, Rewriting earnings history, Review of Accounting Studies, 13, 1, 10.1007/s11142-007-9041-4 Lev, 1996, The capitalization, amortization, and value-relevance of R&D, Journal of Accounting and Economics, 21, 107, 10.1016/0165-4101(95)00410-6 Lev, 1993, Fundamental information analysis, Journal of Accounting Research, 31, 190, 10.2307/2491270 Lev, 1999, The boundaries of financial reporting and how to extend them, Journal of Accounting Research, 37, 353, 10.2307/2491413 Levi, 2008, Voluntary disclosure of accruals in earnings press releases and the pricing of accruals, Review of Accounting Studies, 13, 1, 10.1007/s11142-007-9059-7 Li, 2008, Annual report readability, current earnings, and earnings persistence, Journal of Accounting and Economics, 45, 221, 10.1016/j.jacceco.2008.02.003 Li, K., 2010. How well do investors understand loss persistence? Working paper, University of Toronto. Liang, 2004, Equilibrium earnings management, incentive contracts, and accounting standards, Contemporary Accounting Research, 21, 685, 10.1506/586L-8DKT-3UYL-L9Q4 Libby, 2008, Relationship incentives and the optimistic/pessimistic pattern in analysts’ forecasts, Journal of Accounting Research, 46, 173, 10.1111/j.1475-679X.2007.00265.x Lindahl, 1989, Dynamic analysis of inventory accounting choice, Journal of Accounting Research, 27, 201, 10.2307/2491232 Littleton, 1956, Choice among alternatives, The Accounting Review, 31, 363 Liu, 2006, Income smoothing over the business cycle: changes in banks’ coordinated management of provisions for loan losses and loan charge-offs from the pre-1990 bust to the 1990s boom, The Accounting Review, 81, 421, 10.2308/accr.2006.81.2.421 Liu, 2000, Stock returns and accounting earnings, Journal of Accounting Research, 38, 71, 10.2307/2672923 Liu, M., Wysocki, P., 2006. Operating risk, information risk, and cost of capital. Working Paper, Pennsylvania State University and Massachusetts Institute of Technology. Lo, 2008, Earnings management and earnings quality, Journal of Accounting and Economics, 45, 350, 10.1016/j.jacceco.2007.08.002 Loudder, 1995, Alternative income determination rules and earnings usefulness: the case of R&D costs, Contemporary Accounting Research, 12, 185, 10.1111/j.1911-3846.1995.tb00486.x Lougee, 2004, Earnings informativeness and strategic disclosure: an empirical examination of “pro forma” earnings, The Accounting Review, 79, 769, 10.2308/accr.2004.79.3.769 Louis, 2005, Do managers credibly use accruals to signal private information? Evidence from the pricing of discretionary accruals around stock splits, Journal of Accounting and Economics, 39, 361, 10.1016/j.jacceco.2004.07.004 Lundholm, 2001, Reconciling value estimates from the discounted cash flow model and the residual income model, Contemporary Accounting Research, 18, 311, 10.1506/W13B-K4BT-455N-TTR2 Malmquist, 1990, Efficient contracting and the choice of accounting method in the oil and gas industry, Journal of Accounting and Economics, 12, 173, 10.1016/0165-4101(90)90046-7 Manry, 2003, The influence of interim auditor: reviews on the association of returns with earnings, The Accounting Review, 78, 251, 10.2308/accr.2003.78.1.251 Matsumoto, 2002, Management’s incentives to avoid negative earnings surprises, The Accounting Review, 77, 483, 10.2308/accr.2002.77.3.483 Maydew, 1997, Tax-induced earnings management by firms with net operating losses, Journal of Accounting Research, 35, 83, 10.2307/2491468 McAnally, 2008, Executive stock options, missed earnings targets, and earnings management, The Accounting Review, 83, 185, 10.2308/accr.2008.83.1.185 McDaniel, L., Martin, R., Maines, L., 2002. Evaluating financial reporting quality: the effects of financial expertise vs. financial literacy. The Accounting Review 77 (Suppl.), 139–167. McInnis, 2010, Earnings smoothness, average returns, and implied cost of equity capital, The Accounting Review, 85, 315, 10.2308/accr.2010.85.1.315 McNichols, 2002, Discussion of “The quality of accruals and earnings: The role of accrual estimation errors”, The Accounting Review, 77, 61, 10.2308/accr.2002.77.s-1.61 McNichols, 2000, Research design issues in earnings management studies, Journal of Accounting and Public Policy, 19, 313, 10.1016/S0278-4254(00)00018-1 McNichols, 2008, Does earnings management affect firms’ investment decisions, The Accounting Review, 83, 1571, 10.2308/accr.2008.83.6.1571 McNichols, 1988, Evidence of earnings management from the provision for bad debts, Journal of Accounting Research, 26, 1, 10.2307/2491176 McVay, 2006, Earnings management using classification shifting: An examination of core earnings and special items, The Accounting Review, 81, 501, 10.2308/accr.2006.81.3.501 McVay, 2006, Trading incentives to meet the analyst forecast, Review of Accounting Studies, 11, 575, 10.1007/s11142-006-9017-9 Melumad, 2008, Line-item analysis of earnings quality, Foundation and Trends in Accounting, 3, 87, 10.1561/1400000010 Menon, 2004, Former audit partners and abnormal accruals, The Accounting Review, 79, 1095, 10.2308/accr.2004.79.4.1095 Menon, 2008, Management turnover following auditor resignations, Contemporary Accounting Research, 25, 567, 10.1506/car.25.2.10 Mensah, 1994, Statutory insolvency regulations and earnings management in the prepaid health-care industry, The Accounting Review, 69, 70 Mergenthaler, R., Jr., 2009. Principles-based versus rules-based standards and earnings management. Working Paper, University of Iowa. Miller, 2006, The press as a watchdog for accounting fraud, Journal of Accounting Research, 44, 1001, 10.1111/j.1475-679X.2006.00224.x Miller, 1998, Determinants of the valuation allowance for deferred tax assets under SFAS No. 109, The Accounting Review, 73, 213 Mlynarczyk, 1969, An empirical study of accounting methods and stock prices, Journal of Accounting Research, 7, 63, 10.2307/2489890 Moehrle, 2002, Do firms use restructuring charge reversals to meet earnings targets?, The Accounting Review, 77, 397, 10.2308/accr.2002.77.2.397 Mohanram, 2009, Is PIN priced risk?, Journal of Accounting and Economics, 47, 226, 10.1016/j.jacceco.2008.10.001 Monem, 2003, Earnings management in response to the introduction of the Australian gold tax, Contemporary Accounting Research, 20, 747, 10.1506/KC7W-C1VN-Y5D4-NAV4 Moore, 1973, Management changes and discretionary accounting decisions, Journal of Accounting Research, 11, 100, 10.2307/2490283 Morsfield, 2006, Do venture capitalists influence the decision to manage earnings in initial public offerings?, The Accounting Review, 81, 1119, 10.2308/accr.2006.81.5.1119 Moses, 1987, Income smoothing and incentives: empirical tests using accounting changes, The Accounting Review, 62, 358 Moyer, 1990, Capital adequacy ratio regulations and accounting choices in commercial banks, Journal of Accounting and Economics, 13, 123, 10.1016/0165-4101(90)90027-2 Muller, 1999, An examination of the voluntary recognition of acquired brand names in the United Kingdom, Journal of Accounting and Economics, 26, 179, 10.1016/S0165-4101(98)00035-4 Myers, 2007, Earnings momentum and earnings management, Journal of Accounting, Auditing, and Finance, 22, 249, 10.1177/0148558X0702200211 Narayanan, 2006, Economic impact of backdating of executive stock options, Michigan Law Review, 105, 1597 Navissi, 1999, Earnings management under price regulation, Contemporary Accounting Research, 16, 281, 10.1111/j.1911-3846.1999.tb00582.x Ndubizu, 2007, Do cross-border listing firms manage earnings or seize a window of opportunity?, The Accounting Review, 82, 1009, 10.2308/accr.2007.82.4.1009 Nelson, M., Elliott, J., Tarpley, R., 2003. How are earnings managed? Examples from auditors, Accounting Horizons 17, 17–35 Nelson, 2002, Evidence from auditors about managers’ and auditors’ earnings-management decisions, The Accounting Review, 77, 175, 10.2308/accr.2002.77.s-1.175 Ng, 1979, Auditing: Incentives and truthful reporting, Journal of Accounting Research, 17, 1, 10.2307/2490604 Nissim, 2001, Ratio analysis and equity valuation: from research to practice, Review of Accounting Studies, 6, 109, 10.1023/A:1011338221623 Njoroge, K., 2009. Accrual noise ratio as a measure of accrual reliability. Working Paper, University of Oregon. Nwaeze, 2006, Accounting information and CEO compensation: the role of cash flow from operations in the presence of earnings, Contemporary Accounting Research, 23, 227, 10.1506/BUQJ-8KUQ-X2TF-K7T4 O’Glove, 1987 Ogneva, 2007, Internal control weakness and cost of equity: evidence from SOX Section 404 disclosures, The Accounting Review, 82, 1255, 10.2308/accr.2007.82.5.1255 Ohlson, 2000 Ohlson, J., 2010. Accruals: an overview. Working Paper, New York University. Pae, 2005, The link between earnings conservatism and the price-to-book ratio, Contemporary Accounting Research, 22, 693, 10.1506/9FDN-N6ED-LJE9-A1HL Palmrose, 2004, Determinants of market reactions to restatement announcements, Journal of Accounting and Economics, 37, 59, 10.1016/j.jacceco.2003.06.003 Palmrose, 2004, The circumstances and legal consequences of non-GAAP reporting: evidence from restatements, Contemporary Accounting Research, 21, 139, 10.1506/WBF9-Y69X-L4DX-JMV1 Patatoukas, P., Thomas, J., 2010. Evidence of conditional conservatism: fact or artifact?. Working Paper, Yale University. Paton, 1940 Penman, 1998, A synthesis of equity valuation techniques and the terminal value calculation for the dividend discount model, Review of Accounting Studies, 2, 303, 10.1023/A:1023688704798 Penman, 2003, The quality of financial statements: perspectives from the recent stock market bubble, Accounting Horizons, 17, 77, 10.2308/acch.2003.17.s-1.77 Penman, 1998, A comparison of dividend, cash flow, and earnings approaches to equity valuation, Contemporary Accounting Research, 15, 343, 10.1111/j.1911-3846.1998.tb00564.x Penman, 2002, Accounting conservatism, the quality of earnings, and stock returns, The Accounting Review, 77, 237, 10.2308/accr.2002.77.2.237 Perry, 1994, Earnings management preceding management buyout offers, Journal of Accounting and Economics, 18, 157, 10.1016/0165-4101(94)00362-9 Petroni, 1992, Optimistic reporting in the property-casualty insurance industry, Journal of Accounting and Economics, 15, 485, 10.1016/0165-4101(92)90003-K Petroni, 2000, Discretionary and non-discretionary revisions of loss reserves by property-casualty insurers: differential implications for future profitability, risk and market value, Review of Accounting Studies, 5, 95, 10.1023/A:1009617023027 Phillips, 1999, Auditor attention to and judgments of aggressive financial reporting, Journal of Accounting Research, 37, 167, 10.2307/2491402 Phillips, 2003, Earnings management: new evidence based on deferred tax expense, The Accounting Review, 78, 491, 10.2308/accr.2003.78.2.491 Pincus, 1993, Accounting methods and differential stock market response to the announcement of earnings, Journal of Accounting, Auditing and Finance, 8, 221, 10.1177/0148558X9300800304 Pincus, 2007, The accrual anomaly: international evidence, The Accounting Review, 82, 169, 10.2308/accr.2007.82.1.169 Plumlee, 2010, An analysis of the underlying causes attributed to restatements, The Accounting Review, 24, 41 Plummer, 1999, The effect of limited liability on the informativeness of earnings: evidence from the stock and bond markets, Contemporary Accounting Research, 16, 541, 10.1111/j.1911-3846.1999.tb00595.x Pope, 1999, International differences in the timeliness, conservatism, and classification of earnings, Journal of Accounting Research, 37, 53, 10.2307/2491345 Pourciau, 1993, Earnings management and nonroutine executive changes, Journal of Accounting and Economics, 16, 317, 10.1016/0165-4101(93)90015-8 Rajgopal, 2002, Empirical evidence on the relation between stock option compensation and risk taking, Journal of Accounting and Economics, 33, 145, 10.1016/S0165-4101(02)00042-3 Rangan, 1998, Earnings management and the performance of seasoned equity offerings, Journal of Financial Economics, 50, 101, 10.1016/S0304-405X(98)00033-6 Richardson, 2003, Earnings quality and short sellers, Accounting Horizons, 17, 49, 10.2308/acch.2003.17.s-1.49 Richardson, 2005, Accrual reliability, earnings persistence and stock prices, Journal of Accounting and Economics, 39, 437, 10.1016/j.jacceco.2005.04.005 Richardson, 2006, The implications of accounting distortions and growth for accruals and profitability, The Accounting Review, 81, 713, 10.2308/accr.2006.81.3.713 Richardson, 2010, Accounting anomalies, fundamental analysis, and returns to investment strategies. Working paper, Journal of Accounting and Economics Conference Ronen, 1975, Classificatory smoothing: alternative income models, Journal of Accounting Research, 13, 133, 10.2307/2490652 Rosner, 2003, Earnings manipulation in failing firms, Contemporary Accounting Research, 20, 361, 10.1506/8EVN-9KRB-3AE4-EE81 Roychowdhury, 2006, Earnings management through real activities manipulation, Journal of Accounting and Economic, 42, 335, 10.1016/j.jacceco.2006.01.002 Ruddock, 2006, Nonaudit services and earnings conservatism: is auditor independence impaired?, Contemporary Accounting Research, 23, 701, 10.1506/6AE8-75YW-8NVW-V8GK Ryan, 2003, Why has the contemporaneous linear returns–earnings relation declined?, The Accounting Review, 78, 523, 10.2308/accr.2003.78.2.523 Ryan, 2006, Identifying conditional conservatism, European Accounting Review, 15, 511, 10.1080/09638180601102099 Schelling, 1978 Schipper, 2003, Earnings quality, Accounting Horizons, 17, 235, 10.2308/acch.2003.17.s-1.97 Schneider, 1990, A test of audit deterrent to financial reporting irregularities using the randomized response technique, The Accounting Review, 65, 668 Scholes, 1977, Estimating betas from nonsynchronous data, Journal of Financial Economics, 5, 309, 10.1016/0304-405X(77)90041-1 Scholes, 1992, Firms’ responses to anticipated reductions in tax rates: the Tax Reform Act of 1986, Journal of Accounting Research, 30, 161, 10.2307/2491200 Schrand, 2003, Earnings management using the valuation allowance for deferred tax assets under SFAS No. 109, Contemporary Accounting Research, 20, 579, 10.1506/480D-098U-607R-5D9W Shackelford, 2001, Empirical tax research in accounting, Journal of Accounting and Economics, 31, 321, 10.1016/S0165-4101(01)00022-2 Shivakumar, 2000, Do firms mislead investors by overstating earnings before seasoned equity offerings?, Journal of Accounting and Economics, 29, 339, 10.1016/S0165-4101(00)00026-4 Sivakumar, 2003, Enforceable accounting rules and income measurement by early 20th century railroads, Journal of Accounting Research, 41, 397, 10.1111/1475-679X.00110 Skinner, 1993, The investment opportunity set and accounting procedure choice: preliminary evidence, Journal of Accounting and Economics, 16, 407, 10.1016/0165-4101(93)90034-D Skinner, 2002, Earnings surprises, growth expectations, and stock returns or don’t let an earnings torpedo sink your portfolio, Review of Accounting Studies, 7, 289, 10.1023/A:1020294523516 Sloan, 1996, Do stock prices fully reflect information in accruals and cash flows about future earnings?, The Accounting Review, 71, 289 Smith, 1976, The effect of the separation of ownership from control on accounting policy decisions, The Accounting Review, 51, 707 Soliman, M., 2008. The use of DuPont analysis by market participants. The Accounting Review 83, 823–853 Sridhar, 1996, Financial contracts, opportunism, and disclosure management, Review of Accounting Studies, 1, 225, 10.1007/BF00555373 Srinivasan, 2005, Consequences of financial reporting failure for outside directors: evidence from accounting restatements and audit committee members, Journal of Accounting Research, 43, 291, 10.1111/j.1475-679x.2005.00172.x Sterling, 1970 Stigler, 1963 Stocken, 2004, Financial reporting system choice and disclosure management, The Accounting Review, 79, 1181, 10.2308/accr.2004.79.4.1181 Subramanyam, 1996, The pricing of discretionary accruals, Journal of Accounting and Economics, 22, 249, 10.1016/S0165-4101(96)00434-X Summers, 1998, Fraudulently misstated financial statements and insider trading: An empirical analysis, The Accounting Review, 73, 131 Sweeney, 1994, Debt-covenant violations and managers’ accounting responses, Journal of Accounting and Economics, 17, 281, 10.1016/0165-4101(94)90030-2 Teoh, 1998, Are accruals during initial public offerings opportunistic?, Review of Accounting Studies, 3, 175, 10.1023/A:1009688619882 Teoh, 1998, Earnings management and the underperformance of seasoned equity offerings, Journal of Financial Economics, 50, 63, 10.1016/S0304-405X(98)00032-4 Teoh, 1993, Perceived auditor quality and the earnings response coefficient, The Accounting Review, 68, 346 Thomas, 2002, Inventory changes and future returns, Review of Accounting Studies, 7, 163, 10.1023/A:1020221918065 Tucker, 2006, Does income smoothing improve earnings informativeness?, The Accounting Review, 81, 251, 10.2308/accr.2006.81.1.251 Uecker, 1981, Perception of the internal and external auditor as a deterrent to corporate irregularities, The Accounting Review, 61, 465 Vafeas, 2005, Audit committees, boards, and the quality of reported earnings, Contemporary Accounting Research, 22, 1093, 10.1506/1QYN-2RFQ-FKYX-XP84 Verrecchia, 1986, Managerial discretion in the choice among financial reporting alternatives, Journal of Accounting and Economics, 8, 175, 10.1016/0165-4101(86)90002-9 Verrecchia, 1990, Information quality and discretionary disclosure, Journal of Accounting and Economics, 12, 365, 10.1016/0165-4101(90)90021-U Wang, 2006, Founding family ownership and earnings quality, Journal of Accounting Research, 44, 619, 10.1111/j.1475-679X.2006.00213.x Warfield, 1995, Managerial ownership, accounting choices, and informativeness of earnings, Journal of Accounting and Economics, 20, 61, 10.1016/0165-4101(94)00393-J Watts, 2003, Conservatism in accounting, Part I: Explanations and implications, Accounting Horizons, 17, 207, 10.2308/acch.2003.17.3.207 Watts, 2003, Conservatism in accounting, Part II: Evidence and research opportunities, Accounting Horizons, 17, 287, 10.2308/acch.2003.17.4.287 Watts, 1986 Watts, 1977, The time series of annual accounting earnings, Journal of Accounting Research, 15, 253, 10.2307/2490352 Waymire, 1985, Earnings volatility and voluntary management forecast disclosure, Journal of Accounting Research, 23, 268, 10.2307/2490919 White, 1970, Discretionary accounting decisions and income normalization, Journal of Accounting Research, 8, 260, 10.2307/2490111 Whittred, 1980, Audit qualification and the timeliness of corporate annual reports, The Accounting Review, 55, 563 Willingham, 1985, Financial statement errors and internal controls judgments, Auditing: A Journal of Practice and Theory, 1, 57 Wilson, 1987, The incremental information content of the accrual and funds components of earnings after controlling for earnings, The Accounting Review, 62, 293 Wysocki, P., 2008. Assessing earnings and accruals quality: U.S. and international evidence. Working paper, MIT. Xie, 2001, The mispricing of abnormal accruals, The Accounting Review, 76, 357, 10.2308/accr.2001.76.3.357 Yermack, 1997, CEO stock option awards and company news announcements, The Journal of Finance, 52, 449, 10.2307/2329486 Zechman, 2010, The relation between voluntary disclosure and financial reporting: evidence from synthetic leases, Journal of Accounting Research, 48, 725, 10.1111/j.1475-679X.2010.00376.x Zhang, 2007, Accruals, investment, and the accrual anomaly, The Accounting Review, 82, 1333, 10.2308/accr.2007.82.5.1333 Zimmer, 1986, Accounting for interest by real estate developers, Journal of Accounting and Economics, 8, 37, 10.1016/0165-4101(86)90009-1 Zmijewski, 1981, An income strategy approach to the positive theory of accounting standard setting/choice, Journal of Accounting and Economics, 3, 129, 10.1016/0165-4101(81)90010-0