The sale of assets to manage earnings in Japan

被引:132
作者
Herrmann, D [1 ]
Inoue, T
Thomas, WB
机构
[1] Oregon State Univ, Corvallis, OR 97331 USA
[2] Kwansei Gakuin Univ, Nishinomiya, Hyogo, Japan
[3] Univ Oklahoma, Norman, OK 73019 USA
关键词
D O I
10.1111/1475-679X.00097
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
In this article we investigate Japanese managers' use of income from the sale of fixed assets and marketable securities to manage earnings. The earnings management target examined is Japanese managers' forecasts of current-year earnings. We find a negative relation between income from asset sales and management forecast error. When current reported operating income is below (above) management's forecast of operating income, firms increase (decrease) earnings through the sale of fixed assets and marketable securities. The results hold after controlling for expected future performance, debt-to-equity ratio, size, growth, and last year's income from asset sales.
引用
收藏
页码:89 / 108
页数:20
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