Earnings management and strategic timing of earnings releases

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dc.contributor Aalto-yliopisto fi
dc.contributor Aalto University en
dc.contributor.author Loisa, Jari
dc.date.accessioned 2014-08-06T08:38:11Z
dc.date.available 2014-08-06T08:38:11Z
dc.date.issued 2013
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/13636
dc.description.abstract Objectives of the study: The purpose of this thesis is to examine the impact of earnings management on earnings release timing decisions. The key research question is whether managers opportunistically time their announcements of upward managed earnings figures to take advantage of reduced investor attention. The existing literature focuses on the relation between earnings surprise and opportunistic earnings release timing, but the role of earnings management is not studied. This thesis aims to fill the gap by examining the impact of accruals-based earnings management and real activities manipulation on the decisions to choose less transparent reporting times, including both intraweek and intraday patterns. In addition, the impact of earnings management on reporting delay is studied. Related to non-GAAP earnings management, the thesis examines opportunistic intraweek timing of restatement announcements. Research method and data: Earnings announcement and financial statement data are retrieved from Thomson I/B/E/S and Compustat. In addition, control variables are retrieved from Reuters, Execucomp and Worldscope. The sample includes 150,576 quarterly earnings announcements released by U.S. listed companies during the time period from January 1995 to December 2012 with standardized earnings surprise and earnings management proxies available. Performance-matched Jones model is used to measure accruals-based earnings management, and the real activities manipulation proxies are defined according to Roychowdhury (2006). The methodology includes t-test of mean difference and a logistic regression model. In addition, OLS regression model is used to study the impact of earnings management on earnings release delay. Findings of the study: The results provide weak support for the relation between earnings management and opportunistic earnings release timing. Also, the study shows that earnings management increases reporting delay. In line with previous research, the results indicate that earnings surprise does not affect earnings release timing, after controlling for firm complexity and corporate governance. In addition, the higher firm complexity and better corporate governance relate to the selection of more transparent reporting times. Finally, I find that restatement announcements are more likely to appear on Fridays, compared to earnings releases. en
dc.format.extent 118
dc.language.iso en en
dc.title Earnings management and strategic timing of earnings releases en
dc.type G2 Pro gradu, diplomityö fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Rahoituksen laitos fi
dc.contributor.department Department of Finance en
dc.subject.keyword exchange-listed companies
dc.subject.keyword pörssiyhtiöt
dc.subject.keyword rahoitus
dc.subject.keyword financing
dc.subject.keyword sijoittajat
dc.subject.keyword investors
dc.subject.keyword laskentatoimi
dc.subject.keyword accounting
dc.subject.keyword behavioral finance
dc.subject.keyword reports
dc.subject.keyword raportit
dc.subject.keyword corporate governance
dc.identifier.urn URN:NBN:fi:aalto-201408062300
dc.type.dcmitype text en
dc.programme.major Finance en
dc.programme.major Rahoitus fi
dc.type.ontasot Master's thesis en
dc.type.ontasot Pro gradu tutkielma fi
dc.subject.helecon laskentatoimi
dc.subject.helecon accounting
dc.subject.helecon rahoitus
dc.subject.helecon financing
dc.subject.helecon tulos
dc.subject.helecon return
dc.ethesisid 13595
dc.date.dateaccepted 2013-11-06
dc.location P1 I fi

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