Journal Article10.1016/0165-4101(94)90030-2
Debt-covenant violations and managers' accounting responses
TL;DR: This article examined accounting changes, costs of default, and accounting-based covenants violated by 130 firms reporting violations in annual reports and found that managers of firms approaching default respond with income-increasing accounting changes and that the default costs imposed by lenders and the accounting flexibility available to managers are important determinants of managers' accounting responses.
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About: This article is published in Journal of Accounting and Economics. The article was published on 01 May 1994. The article focuses on the topics: Accounting information system & Debt.
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Citations
Earnings Management and Financial Crisis: Evidence from India
Manish Kumar,Madhu Vij +1 more
- 01 Jul 2017
TL;DR: In this paper, the authors examined the earnings management behavior of Indian firms during the global financial crisis in 2008 and compare with the period before and after, using the financial data of S&P CNX 500 companies for the period of 2007-2012.
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Earnings management: a three-decade analysis and future prospects
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TL;DR: The literature on earnings management (EM) has grown substantially over the past three decades. Existing literature presents mixed and inconclusive findings on the effectiveness of various EM tools and governance mechanisms. Further research is needed to develop theoretical frameworks and empirical methodologies to address the challenges posed by the evolving EM landscape.
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Dividend Stickiness, Debt Covenants, and Earnings Management
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A Systematic Approach to the Motivations for Earnings Management: A Literature Review
Susana Callao,José Ignacio Jarne Jarne,David Wróblewski +2 more
- 19 Jan 2021
TL;DR: In this article, the authors present a review of growing body of literature on motivations for the earnings manipulation, and their objective is to provide an ample classification of the reasons for the manipulation.
Dividend Covenants and Income Measurement
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TL;DR: The authors constructs a theory of dividend restrictions in incomplete markets in an attempt to better understand the role of accounting constructions in optimal dividend restrictions, and analyzes whether optimal dividend restriction can be characterized as defining an accounting-earnings-based reservoir available for dividends, and whether earnings calculated for this purpose exhibit conservatism.
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