On the association between voluntary disclosure and earnings management

Article Abstract:

The relationship between managers' earnings forecasts and their management of reported earnings was investigated. The study examined whether managers gear reported earnings in the direction of their projected earnings to avoid shareholder action and loss of reputation for accuracy. It tested the hypothesis that managers make accounting decisions that can increase/decrease income when earnings would otherwise be below/above projected annual earnings. The findings provide support for the prediction that managers adopt positive discretionary accruals to raise reported earnings when they are likely to fall below the company's earnings forecasts. Evidence was also found indicating a positive relationship between the extent of earnings management activity and proxies for the greater probability and litigation cost related to management earnings forecast errors.

Management, Forecasts and trends, Profits, Corporate profits

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IAS versus U.S. GAAP: Information asymmetry-based evidence from Germany's New Market

Article Abstract:

This research explores the differences between United States and international accounting standards in share turnover and bid-ask spread and concludes that the differences are statistically insignificant.

Germany, International aspects

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Disclosure practices, enforcement of accounting standards, and analysts' forecast accuracy: an international study

Article Abstract:

Enforcement of accounting standards and level of accounting disclosure are related to the accuracy of company forecasts, offering a tool for planning.

Science & research, World, Financial Forecasting, Forecasting

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