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Earnings Benchmarks (earning + benchmark)
Selected AbstractsAccruals Management to Achieve Earnings Benchmarks: A Comparison of Pre-managed Profit and Loss FirmsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 5-6 2006Abhijit Barua Abstract:, This study examines whether firms with profits before accruals management are more likely than firms with losses before accruals management to meet or exceed earnings benchmarks when pre-managed earnings are below those benchmarks. We extend Brown (2001) by documenting that the differential propensity to achieve earnings benchmarks by profitable and nonprofitable firms results from differential accruals management behavior. We find that firms with profits before accruals management are more likely than firms with losses before accruals management to have pre-managed earnings below both analysts' forecasts and prior period earnings and reported earnings above these benchmarks. [source] An analysis of the reasons for the asymmetries surrounding earnings benchmarksACCOUNTING & FINANCE, Issue 3 2010Bruce K. Bennett C89; G10; M41 Abstract Several studies report an asymmetry in the distribution of earnings around specified benchmarks. However, doubt has arisen over whether the observed ,kink' in the distribution of earnings is solely caused by earnings management. We use a ratio analysis approach to examine a range of specific accruals for evidence of earnings management. We find little evidence that firms immediately above the benchmark have abnormal receivables, inventories or provisions. However, they do increase cash-from-customers and reduce inventory. Thus, our results support the recent research that suggests that firms engage in real actions to meet earnings benchmarks. [source] Do Australian companies manage earnings to meet simple earnings benchmarks?ACCOUNTING & FINANCE, Issue 1 2003David Holland Measurement error in unexpected accruals is an important problem for empirical earnings management research. Several recent studies avoid this problem by examining the pooled, cross,sectional distribution of reported earnings. Discontinuities in the distribution of reported earnings around key earnings thresholds may indicate the exercise of management discretion (i.e. earnings management). We apply this approach to the detection of earnings management by Australian firms. Our results generally indicate significantly more small earnings increases and small profits than expected and conversely, considerably fewer small earnings decreases and small losses than expected. These results are much stronger for larger Australian firms. We undertake an exploratory analysis of alternative explanations for our results and find some evidence consistent with management signalling its inside knowledge about the firm's expected future profitability to smooth earnings, as opposed to ,management intent to deceive' as an explanation for our results. [source] Accruals Management to Achieve Earnings Benchmarks: A Comparison of Pre-managed Profit and Loss FirmsJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 5-6 2006Abhijit Barua Abstract:, This study examines whether firms with profits before accruals management are more likely than firms with losses before accruals management to meet or exceed earnings benchmarks when pre-managed earnings are below those benchmarks. We extend Brown (2001) by documenting that the differential propensity to achieve earnings benchmarks by profitable and nonprofitable firms results from differential accruals management behavior. We find that firms with profits before accruals management are more likely than firms with losses before accruals management to have pre-managed earnings below both analysts' forecasts and prior period earnings and reported earnings above these benchmarks. [source] | ||||||||||