1468-5957/asset/cover.gif?v=1&s=d68ba176d00932545c79f6d06c185d7a125200df "Journal of Business Finance & Accounting")
The authors are respectively, Associate Professor of Accounting at the University of Vermont; Associate Professor of Accounting at the University of Vermont; and Associate Professor of Accounting at the University of Toledo. They gratefuly acknowledge the suggestions and comments of Gene Laber Bruce Neumann, Jim Sullivan, Len Tashman, Paula Wilson and especially the anonymous referee on earlier versions of this paper.
1468-5957/asset/JBFA_centre.gif?v=1&s=5da49dcf12df1cd6d07423521df0419ebf8be461)
EARNINGS MANAGEMENT AND CORPORATE OWNERSHIP STRUCTURE: AN EXAMINATION OF EXTRAORDINARY ITEM REPORTING
Article first published online: 7 DEC 2006
DOI: 10.1111/j.1468-5957.1993.tb00270.x
Additional Information
How to Cite
Dempsey, S. J., Hunt, H. G. and Schroeder, N. W. (1993), EARNINGS MANAGEMENT AND CORPORATE OWNERSHIP STRUCTURE: AN EXAMINATION OF EXTRAORDINARY ITEM REPORTING. Journal of Business Finance & Accounting, 20: 479–500. doi: 10.1111/j.1468-5957.1993.tb00270.x
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The authors are respectively, Associate Professor of Accounting at the University of Vermont; Associate Professor of Accounting at the University of Vermont; and Associate Professor of Accounting at the University of Toledo. They gratefuly acknowledge the suggestions and comments of Gene Laber Bruce Neumann, Jim Sullivan, Len Tashman, Paula Wilson and especially the anonymous referee on earlier versions of this paper.
Publication History
- Issue published online: 7 DEC 2006
- Article first published online: 7 DEC 2006
- (Paper received December 1990, accepted February 1991)
- Abstract
- References
- Cited By
This study examines the empirical relation between a three-way classification of corporate ownership structure and earnings management through the use of extraordinary item (EI) reporting. The EI reporting decisions examined are those made during 1960-1966, a time period when US reporting standards allowed considerable management discretion with respect to both the classification of EIs and their placement in the financial statements (i.e., income. versus retained earnings statement). Overall, the results provide strong support for income-increasing behavior by non-owner managers. Importantly, the results also suggest that the three-way ownership classification scheme used in this study is superior to the dichotomous owner-controlled/managercontrolled classification typically used in accounting studies.