Pre managed earnings benchmarks and earnings management of Australian firms
This study investigates benchmark beating behaviour and circumstances under which managers inflate earnings to beat earnings benchmarks. We show that two benchmarks, positive earnings and positive earnings change, are associated with earnings manipulation. Using a sample of Australian firms from 200...
| Main Authors: | , |
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| Format: | Journal Article |
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University of Wollongong, School of Accounting and Finance
2012
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| Online Access: | http://ro.uow.edu.au/aabfj/vol6/iss1/11 http://hdl.handle.net/20.500.11937/17231 |
| _version_ | 1848749408996294656 |
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| author | Sun, L. Rath, Subhrendu |
| author_facet | Sun, L. Rath, Subhrendu |
| author_sort | Sun, L. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study investigates benchmark beating behaviour and circumstances under which managers inflate earnings to beat earnings benchmarks. We show that two benchmarks, positive earnings and positive earnings change, are associated with earnings manipulation. Using a sample of Australian firms from 2000 to 2006, we find that when the underlying earnings are negative or below prior year’s earnings, firms are more likely to use discretionary accruals to inflate earnings to beat benchmarks. |
| first_indexed | 2025-11-14T07:20:28Z |
| format | Journal Article |
| id | curtin-20.500.11937-17231 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:20:28Z |
| publishDate | 2012 |
| publisher | University of Wollongong, School of Accounting and Finance |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-172312017-05-30T08:05:44Z Pre managed earnings benchmarks and earnings management of Australian firms Sun, L. Rath, Subhrendu earnings management Benchmark beating pre-managed earnings This study investigates benchmark beating behaviour and circumstances under which managers inflate earnings to beat earnings benchmarks. We show that two benchmarks, positive earnings and positive earnings change, are associated with earnings manipulation. Using a sample of Australian firms from 2000 to 2006, we find that when the underlying earnings are negative or below prior year’s earnings, firms are more likely to use discretionary accruals to inflate earnings to beat benchmarks. 2012 Journal Article http://hdl.handle.net/20.500.11937/17231 http://ro.uow.edu.au/aabfj/vol6/iss1/11 University of Wollongong, School of Accounting and Finance fulltext |
| spellingShingle | earnings management Benchmark beating pre-managed earnings Sun, L. Rath, Subhrendu Pre managed earnings benchmarks and earnings management of Australian firms |
| title | Pre managed earnings benchmarks and earnings management of Australian firms |
| title_full | Pre managed earnings benchmarks and earnings management of Australian firms |
| title_fullStr | Pre managed earnings benchmarks and earnings management of Australian firms |
| title_full_unstemmed | Pre managed earnings benchmarks and earnings management of Australian firms |
| title_short | Pre managed earnings benchmarks and earnings management of Australian firms |
| title_sort | pre managed earnings benchmarks and earnings management of australian firms |
| topic | earnings management Benchmark beating pre-managed earnings |
| url | http://ro.uow.edu.au/aabfj/vol6/iss1/11 http://hdl.handle.net/20.500.11937/17231 |