2015 Fiscal Year Final Research Report
The Stock Market Response to Accrual-Based and Real Earnings Management
| Project/Area Number |
25780288
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Multi-year Fund |
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| Research Field |
Accounting
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| Research Institution | Tohoku Gakuin University |
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Principal Investigator |
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| Project Period (FY) |
2013-04-01 – 2016-03-31
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| Keywords | 利益マネジメント / 会計的裁量行動 / 実体的裁量行動 / 利益ベンチマーク / 経営者予想利益 / 産業平均利益率 / 株式市場 / 株式リターン |
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| Outline of Final Research Achievements |
There are two research outcomes as follows.
First, I examined the market response to achieving managers’ earnings forecasts through earnings management in Japanese setting. The results indicate that the rewards are not discounted for using accrual-based earnings management. Meanwhile, the results indicate that the rewards are discounted but still exist for using real earnings management.
Second, I examined earnings management to achieve industry-average profitability using the data of Japanese firms. The results indicate that Japanese firms engage in real and accrual-based earnings management to achieve industry-average profitability. The results also indicate that firms in more competitive industries engage in greater income-increasing earnings management to achieve industry-average profitability.
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| Free Research Field |
財務会計
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