We examine whether discretionary accruals of firms obtaining substantial external financing
can be explained by managerial manipulation or managerial overoptimism. Insider trading …

In this paper, we investigate how aggressive financial reporting affects a firm's ability to
obtain external funds and its choices of external financing. First, we find that after earnings …

We demonstrate that managers'“normal” operating decisions associated with large (positive
or negative) net external financing activities are likely to lead to significant measurement …

Despite a large literature on discretionary accruals, how the use of discretionary accruals
impacts corporate financial decisions is not well understood. We hypothesize that a …

There is little research on how accounting information quality affects a firm's external
financing choices. In this paper, we use the occurrence of accounting restatements as a …

This study tests the hypotheses that there is a positive association between Free Cash Flow
(FCF), as defined by Jensen, and accruals and that debt moderates this relationship. Jensen …

Purpose–The purpose of this paper is to investigate, using data on US manufacturing firms,
how and when corporate governance affects managers' decisions to use discretionary …

A study examines whether managers manipulate earnings during the time periods
surrounding the issuance of new debt. For each company, the cost of debt financing is a …

Bradshaw, Richardson, and Sloan (BRS) find a negative relation between their
comprehensive measure of corporate financing activities and future stock returns and future …

This paper investigates the relation of the external financing anomaly with the accrual
anomaly, by focusing separately on working capital accruals and long-term accruals. We …