바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

E-ISSN : 2233-5382

Article Contents

Prev
e-Submission

Vol.4 No.1
Citation Share

The Amount of Earnings Per Share’s Adjustment and Earnings Management

The Journal of Industrial Distribution & Business / The Journal of Industrial Distribution & Business, (E)2233-5382
2013, v.4 no.1, pp.15-21
Monireh Paricheh (Islamic azad university, Neyshabur Branch)
Alireza Mehrazeen (Islamic azad university, Neyshabur)
Mahmoud Mousavi Shiri (Payame Noor University)
Monireh, P. , Alireza, M. , & Mahmoud, M. S. (2013). The Amount of Earnings Per Share’s Adjustment and Earnings Management. The Journal of Industrial Distribution & Business, 4(1), 15-21.
  • Downloaded
  • Viewed
PDF Download

Abstract

relationship between actual profits’ deviation from the profits expected in earnings per share’s adjustment announcements and the degree of apparent earnings management in annual financial statements. Research design, data, and methodology - The samples consisted of 133 companies from ten industries. The companies were selected among those listed in the stock exchange, and their data were examined covering the two-year period from 2008 to 2010. Tests were conducted using a regression model and SPSS statistical software. Results - The findings indicate the following. There is no significantly positive relationship among the last earnings per share’s adjustment forecast, the first earnings forecast per share, and earnings management. Moreover, the amount of the latest earnings per share’s adjustment forecast relative to its first forecast is not associated with the companies’ discretionary accruals items. Finally, the hypothesis that a relationship exists between companies’latest adjustments of their earnings per share and earnings management was tested the results indicate that there is no such relationship. Conclusions - The study’s results suggest that the amount of earnings per share’s adjustment is not a motivation for earnings management.

keywords
Earnings Per Share, Earnings Per Share’s Positive Adjustment, Earnings Per Share’s Negative Adjustment, Earnings Management

Reference

1.

Babalyan, L. (2004), "Earnings Management By Firms Applying International Financial Reporting Standards: Implications For Valuation", Univeristy of Fribourg Doctoral Dissertations.

2.

Baik, B. & Jiang, G. (2006), "The use of Management Forecasts to Dampen Analysts Expectations", Journal of Accounting and Public Policy, 25(6), 531-553

3.

Beaver,W.H. & McNichols, M.F. (1998), "The Characteristics and Valuation of Loss Reserves of Property Casualty Insurers", Review of Accounting Studies, 3(1-2), 73-95.

4.

Burgstahler, D. & Dichev, I.(1997), "Earnings Management to Avoid Earnings Decreases And Losses", Journal of Accounting And Economics, 24, 99-126.

5.

Butler, M., Leone, A.J. & Willenborg, M. (2004), "An Empirical Analysis of Auditor Reporting And Its Assocition With Abnormal Accruals", Journal of Accounting and Economics, 37(2), 139-165.

6.

Choi, J. H., Myers, L.A., Zang, Y. & Ziebart, D.(2011), "Do Management Eps Forecasts Allow Returns to Reflect Future Earnings?" Implications for The Continuation of Managements Quarterly Earning Guidance", Review of Accounting Studies, 16(1), 143-182.

7.

Das, S. & Zhang,H. (2003), "Rounding – up in Reported Eps, Behavioral Thresholds, And, Earning Management", Journal of Accounting and Economics, 35, 31–50.

8.

Ducharme, L. L., Liu, Y.P. & Malatesta, H. (2004), "Earnings Management and Earnings Surprises: Stock Price Reactions to Earnings Components", East Asian Journal of Business Economics, 1(1), 13-21.

9.

Jensen, M .C. (2005), "Agency Costs of Overvalued Equity Financial Management, Spring, 5-19.

10.

Koch, A. (2001), "Financial Distress and the Credibility of Management Earnings Forecasts", GSIA Working Paper # 2000-10, 1-39.

11.

Matsumoto, D.(2002) "Managements Incentives to Avoid Negative Earnings Surprises.", Journal of The Accounting Review, (77) 3, 483-514.

12.

Moghadam, Bahar.M & Koohi, A. (2010),"Reviwing Type Of Earnings Management In Listed Companies In Tehran Stock Exchange", Knowledge Of Accounting journal, 2, 75-93.

13.

Myers, J., Myers,A.L. & Skinner,D.J. (2006), "Earnings Momentum and Earnings Management ", Journal of Accounting, Auditing, and Finance, 22(2),249-284.

14.

Noravesh, I., Sepasi, S. & Nikbakht. M.R. (2005),"Survey Earnings Management in Listed Companies in Tehran Stock Exchange", Humanities and Social Sciences Journal of Shiraz University, 22( 2),122-132.

15.

Richardson, S., Tuna, I. & Wu, Min (2002), "Predicting Earnings Management: The Case of Earnings Restatments", ."Working paper, University of Pennsylvania.

16.

Subramanyam, K. P.(1996),"The Pricing of Discretionary Accruals", Journal of Accounting and Economics, (22), 249-281.

The Journal of Industrial Distribution & Business

e-Submission OA Policy