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

We demonstrate that the articulation among accruals, cash flows and revenues which is
typically assumed in tests of earnings management does not hold when large (positive or …

This paper addresses certain methodological issues that arise in estimating abnormal (or
discretionary) accruals for detection of event-specific earnings management. Unlike prior …

We measure the power of some simple financial statement analysis techniques for
identifying instances of significant earnings overstatements, and then contrast the results …

For the most part the extant literature considers abnormal accruals to be opportunistic and
discounted by the market. However, an alternative view is that abnormal accruals signal …

Prior research suggests that the quality of accruals may be compromised where the
magnitude of accruals is abnormally high, due to the presence of errors in the accruals …

This paper examines the information contents of discretionary (abnormal) accruals under
Chinese evidence during 2008 to 2012, whether they could provide superior insight into …

Prior research has shown the prevalence of measurement error in models used to estimate
aggregate discretionary accruals. In these models, the incremental information content of the …

This paper evaluates a comprehensive list of metrics proposed for detecting earnings
management in a setting where managers manipulate earnings to round up reported EPS. I …

If the market anticipates the reversing nature of abnormal working capital accruals, then the
reported magnitude of earnings surprises that contain abnormal accruals will differ from the …