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Where do firms manage earnings?

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dc.contributor.author Dyreng, Scott D.
dc.contributor.author Hanlon, Michelle
dc.contributor.author Maydew, Edward L.
dc.date.accessioned 2012-11-29T21:12:20Z
dc.date.available 2012-11-29T21:12:20Z
dc.date.issued 2012-06
dc.identifier.issn 1380-6653
dc.identifier.issn 1573-7136
dc.identifier.uri http://hdl.handle.net/1721.1/75117
dc.description.abstract Despite decades of research on how, why, and when companies manage earnings, there is a paucity of evidence about the geographic location of earnings management within multinational firms. In this study, we examine where companies manage earnings using a sample of 2,067 U.S. multinational firms from 1994 to 2009. We predict and find that firms with extensive foreign operations in weak rule of law countries have more foreign earnings management than companies with subsidiaries in locations where the rule of law is strong. We also find some evidence that profitable firms with extensive tax haven subsidiaries manage earnings more than other firms and that the earnings management is concentrated in foreign income. Apart from these results, we find that most earnings management takes place in domestic income, not foreign income. en_US
dc.description.sponsorship Arthur Andersen (Firm) (Arthur Andersen Faculty Fund) en_US
dc.language.iso en_US
dc.publisher Springer Science + Business Media B.V. en_US
dc.relation.isversionof http://dx.doi.org/ 10.1007/s11142-012-9194-7 en_US
dc.rights Creative Commons Attribution-Noncommercial-Share Alike 3.0 en_US
dc.rights.uri http://creativecommons.org/licenses/by-nc-sa/3.0/ en_US
dc.source SSRN en_US
dc.title Where do firms manage earnings? en_US
dc.type Article en_US
dc.identifier.citation Dyreng, Scott D., Michelle Hanlon, and Edward L. Maydew. “Where Do Firms Manage Earnings?” Review of Accounting Studies 17.3 (2012): 649–687. Web. en_US
dc.contributor.department Sloan School of Management en_US
dc.contributor.mitauthor Hanlon, Michelle
dc.relation.journal Review of Accounting Studies en_US
dc.identifier.mitlicense OPEN_ACCESS_POLICY en_US
dc.eprint.version Author's final manuscript en_US
dc.type.uri http://purl.org/eprint/type/JournalArticle en_US
eprint.status http://purl.org/eprint/status/PeerReviewed en_US
dspace.orderedauthors Dyreng, Scott D.; Hanlon, Michelle; Maydew, Edward L. en


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