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dc.contributor.advisorMichelle Hanlon.en_US
dc.contributor.authorLemayian, Zawadi Rehemaen_US
dc.contributor.otherSloan School of Management.en_US
dc.date.accessioned2013-11-18T19:04:51Z
dc.date.available2013-11-18T19:04:51Z
dc.date.copyright2013en_US
dc.date.issued2013en_US
dc.identifier.urihttp://hdl.handle.net/1721.1/82291
dc.descriptionThesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, 2013.en_US
dc.descriptionCataloged from PDF version of thesis.en_US
dc.descriptionIncludes bibliographical references (p. 42-43).en_US
dc.description.abstractThis paper investigates whether earnings management incentives are associated with gains/losses recognized when firms repurchase bonds. The research question is motivated by the inclusion of these gains/losses in firms' income, which creates the potential to use them to manage earnings. Using a sample of 778 bond repurchases from 1994 to 2011, I find that firms record larger extinguishment gains when earnings are (i) short of analysts' forecasts, or (ii) low relative to the prior year's earnings. Furthermore, the effect is more pronounced after the introduction of SFAS 145 which moved gains/losses from the extinguishment of debt from extraordinary items to operating income. In addition, the result is weaker after SFAS 159 which allowed firms to report liabilities at fair value, thus causing smaller gains to be recorded upon repurchase of debt. This study contributes to the literature on earnings management by providing evidence of real earnings management through bond repurchases and to the literature on bond buybacks by identifying accounting incentives as a determinant of the size of extinguishment gains.en_US
dc.description.statementofresponsibilityby Zawadi Rehema Lemayian.en_US
dc.format.extent64 p.en_US
dc.language.isoengen_US
dc.publisherMassachusetts Institute of Technologyen_US
dc.rightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.en_US
dc.rights.urihttp://dspace.mit.edu/handle/1721.1/7582en_US
dc.subjectSloan School of Management.en_US
dc.titleCorporate bond repurchases and earnings managementen_US
dc.typeThesisen_US
dc.description.degreePh.D.en_US
dc.contributor.departmentSloan School of Management
dc.identifier.oclc861338477en_US


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