New Debt Issues and Earnings Management
We empirically examine the influence and effects of real earnings management (REM) on the debt market by investigating the bond rating decision established by analysts with respect to a firm”s new bond issues,and also by exploring REM”s influence in determining the actual market price of a firm”s new debt offerings.Extant research provides relatively sparse and conflicting representations concerning the effects of REM on equity shareholders.We contribute to the literature by documenting the effects of REM on debt market participants.Our results indicate a negative association of REM with respect to a firm”s assigned bond rating,and also with the market pricing of the firm”s debt issuance.These results appear to be driven by firms whose REM activity is greater than their industry median.Overall,these results are consistent with debt market participants viewing real earnings management activities as a value decreasing exercise.
Aaron Crabtree John J.Maher Huishan Wan
School of Accountancy University of Nebraska-Lincoln Department of Accounting and Information Systems Pamplin College of Business Virginia Tech
国内会议
昆明
英文
162-163
2012-07-01（万方平台首次上网日期，不代表论文的发表时间）