Empirical Analyses of Earnings Management before Securities Issue

2022 Fiscal Year Final Research Report

• Project/Area Number: 16K17211
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Accounting
• Research Institution: Chuo University (2022); Tohoku Gakuin University (2016-2021)
• Principal Investigator: Yamaguchi Tomoyasu 中央大学, 商学部, 教授 (50613626)
• Project Period (FY): 2016-04-01 – 2023-03-31
• Keywords: 利益マネジメント / 実体的裁量行動 / 会計的裁量行動 / 証券発行 / 公募増資 / 普通社債発行 / 転換社債発行

Outline of Final Research Achievements

Firms raise funds by issuing securities such as stocks and bonds. Since stock prices and bond interest rates are affected by earnings figures immediately before securities issue, managers have an incentive to manage earnings. This paper focuses on Japanese firms and examines whether managers manage earnings immediately before securities issue. I find that managers engage in accrual-based and real earnings management to increase earnings in the year prior to seasoned equity offerings, straight bond issues, and convertible bond issues.

Free Research Field

財務会計

Academic Significance and Societal Importance of the Research Achievements

経営者の利益マネジメント（会計基準の規定の範囲内で利益を調整する行動）は，会計上の操作による「会計的裁量行動」と事業活動の操作による「実体的裁量行動」に分類できる。このうち，先行研究は主として会計的裁量行動に着目してきたが，本研究は実体的裁量行動にも焦点を当て，証券発行前の利益マネジメントを包括的に解明している。実体的裁量行動は企業価値を毀損する恐れがあるため，当該行動の一側面を明らかにした本研究の重要性は高いと言えよう。