Earnings Management Surrounding New Debt Issues

被引：68

作者：

Liu, Yixin ^{[1
]}

Ning, Yixi ^{[2
]}

Davidson, Wallace N., III ^{[3
]}

机构：

[1] Univ New Hampshire, Durham, NH 03824 USA

[2] Univ Houston, Houston, TX 77004 USA

[3] Southern Illinois Univ, Carbondale, IL 62901 USA

来源：

FINANCIAL REVIEW | 2010年 / 45卷 / 03期

关键词：

earnings management; cost of debt; securities offerings;

D O I：

10.1111/j.1540-6288.2010.00265.x

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine whether firms manage earnings before issuing bonds to achieve a lower cost of borrowing. We find significant income-increasing earnings management prior to bond offerings. We also find that firms that manage earnings upward issue debt at a lower cost, after controlling for various bond issuer and issue characteristics. Our results are consistent with studies that report earnings management around equity issuance. The results indicate that, like equity holders, bondholders fail to see through the inflated earnings numbers in pricing new debt.

引用

页码：659 / 681

页数：23

共 45 条

[1] Board characteristics, accounting report integrity, and the cost of debt [J].