2010 Fiscal Year Final Research Report
AN EMPIRICAL STUDY OF EARNINGS MANAGEMENT UNDER THE INTERNAL CONTROL RULE IN JAPAN
| Project/Area Number |
20330096
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| Research Category |
Grant-in-Aid for Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Accounting
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| Research Institution | Meijo University |
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Principal Investigator |
KUNIMURA Michio Meijo University, 経営学部, 教授 (70089952)
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| Co-Investigator(Kenkyū-buntansha) |
YOSHIDA Yashusi 千葉商科大学, 大学院・会計ファイナンス研究科, 教授 (10383192)
TAZAWA Motohiro 名城大学, 経営学部, 准教授 (80411487)
YAMAGATA Takehiro 佐賀大学, 経済学部, 准教授 (80448464)
TASIRO Tatuhiko 名城大学, 経営学部, 教授 (90268061)
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| Co-Investigator(Renkei-kenkyūsha) |
KAWADA Makoto 名城大学, 経営学部, 教授 (00319310)
NAKANE Tosiharu 名城大学, 経営学部, 教授・学長 (30086425)
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| Project Period (FY) |
2008 – 2010
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| Keywords | 報告利益管理 / 発生項目 / 棚卸資産の実体的活動 / 異常値 / 会計的操作と実体的操作 / 自動車産業 |
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| Research Abstract |
This study examines earnings management in Japan. We show kinky distribution of corporate earnings suggesting manipulation to avoid reporting losses. We find a large rate of reduction in forecasts errors in the last quarter of the fiscal year. Tazawa's sophisticated model for inventory estimation detects evidence consistent with potential accounting manipulation of "lower of cost or market" to avoid reporting losses. This study reveals evidence suggesting income smoothing behavior through inventories in Japanese automobile industry. We finally examine explicit manipulation using special profit, such as gain trading, for compensating big special losses.
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