Accrual-Based Risk Reduction An Indicator to Identify Managers' Discretion Using a Break-Even Point of Cash Flows

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概要

• 論文の詳細を見る

• This paper examines an indicator to transform abnormal accruals into a proxy for accrualbased risk reduction caused by managers' discretionary behaviors. A break-even point based on operating cash flows is introduced to derive the indicator. The sign of abnormal accruals is used as a signal of earnings management in prior studies. However, this study proposes the addition of the above indicator as another proxy of managers' discretion. This study tests the big bath accounting hypothesis for firms whose abnormal accruals are restricted to be negative to examine the significance of the indicator. Results suggest that the indicator can serve as a proxy supporting the function of abnormal accruals, or give a threshold to identify abnormal accruals as a proxy of managers' discretionary behaviors.

• 青森公立大学の論文
• 2003-09-30

著者

• Sato Kiyokazu

  Aomori Public College

関連論文

• Accrual-Based Risk Reduction An Indicator to Identify Managers' Discretion Using a Break-Even Point of Cash Flows

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