Stock liquidity and earnings management
Keywords: Accrual-based earnings management, the actual management profit, stock liquidity. ABSTRACT. Liquidity criteria that investors in making portfolio stock liquidity curbs earnings management by facilitating long-term institutional investors' governance through trading, direct intervention, and short-sellers' 5 Jun 2017 This paper aims to examine whether ownership concentration and earnings management affect the stock market liquidity of Malaysian firms. The Effect of Leverage and Liquidity Ratios on Earnings Management and Capital of Banks Listed on the Tehran Stock Exchange. earnings management has a significant effect only on liquidity, profitability and leverage. Keywords: Family Business, Tehran Stock Exchange and Earnings
13 Jan 2017 Abstract This study investigates the effects of stock liquidity on earnings management. While prior research finds that liquidity has mixed effects
Although earnings management has been explored by multiple researchers in the literature, almost all research projects have focused on developed stock This study investigates the effects of stock liquidity on earnings management. While prior research finds that liquidity has mixed effects on corporate governance, our baseline regression results show that an increase in stock liquidity is associated with an increase in discretionary accruals and revenues. earnings management on stock market liquidity. The first measure consists of accounting data while the other two relate to real earnings management, which included operating cash flow and discretionary costs. The results point to a direct relationship between illiquidity measure and earnings management through discretionary accruals. earnings management. We find that stock liquidity positively interacts with takeover exposure and equity compensation in affecting earnings management. This evidence is consistent with the argument that increased stock liquidity intensifies managers’ motives to manage earnings upward due to higher hostile takeover pressure and Our finding is insensitive to specific stock liquidity and earnings management measures used and remains strong after controlling for a comprehensive list of possible covariates including firm fixed effects. We use the 2001 decimalization as a quasi-experiment to run a difference-in-differences analysis (DiD)
THE EFFECT OF EARNING QUALITY ON LIQUIDITY RISK BY APPLYING ON. BANKS REGISTERED IN IRAQI STOCK EXCHANGE. Saad S. ISSA1, Wisam N.
Liquidity can have a real impact on earnings management for at least two reasons. A liquid stock market enhances large institutional investors' ability to discipline In doing so, the uninformed traders become less interested in trading stocks and the stock liquidity decreases. Keywords: Earnings management, Modified Jones Abstract. Stock liquidity providers (market makers or specialists) for firms that manage earnings face greater uncertainty about the true value of their inventory of We study the relationship between stock market liquidity and earnings management. Using a sample of U.S. public firms over the time period from 1993 to 2012, listed on the Tunis Stock Exchange over the 1999 - 2011 period. Disclosure Information, Earnings Management and Market liquidity: Review of the Literature. Nevertheless, studies of the relationship between earnings and liquidity management remain rare, especially in emerging markets (Beneish et al., 2012, Peterson
Nevertheless, studies of the relationship between earnings and liquidity management remain rare, especially in emerging markets (Beneish et al., 2012, Peterson
Keywords: Accrual-based earnings management, the actual management profit, stock liquidity. ABSTRACT. Liquidity criteria that investors in making portfolio stock liquidity curbs earnings management by facilitating long-term institutional investors' governance through trading, direct intervention, and short-sellers' 5 Jun 2017 This paper aims to examine whether ownership concentration and earnings management affect the stock market liquidity of Malaysian firms. The Effect of Leverage and Liquidity Ratios on Earnings Management and Capital of Banks Listed on the Tehran Stock Exchange. earnings management has a significant effect only on liquidity, profitability and leverage. Keywords: Family Business, Tehran Stock Exchange and Earnings management on stock liquidity of companies listed on Tehran stock exchange, they showed that higher earnings management firms attract lower stock liquidity.
In fact, earnings management undermines the quality of the financial information disseminated to the financial market, which leads to a high level of information asymmetry, a low level of trust and credibility with investors and therefore a decrease in liquidity.
In fact, earnings management undermines the quality of the financial information disseminated to the financial market, which leads to a high level of information asymmetry, a low level of trust and credibility with investors and therefore a decrease in liquidity. earnings management. We find that stock liquidity positively interacts with takeover exposure and equity compensation in affecting earnings management. This evidence is consistent with the argument that increased stock liquidity intensifies managers’ motives to manage earnings upward due to higher hostile takeover pressure and Stock liquidity is a measure employed in forming a portfolio. Earnings management is one of the factors which might be effective in stock liquidity. Earnings management has been evaluated in terms of different dimensions. These dimensions include the accrual-based and real earnings management. Abstract This study investigates the effects of stock liquidity on earnings management. While prior research finds that liquidity has mixed effects on corporate governance, our baseline regression results show that an increase in stock liquidity is associated with an increase in discretionary accruals and revenues. The Impact of Earnings Management on Liquidity: Case of the Tunisian Stock Market Youssef Riahi, Imen Lamiri & Mounira Ben Arab Institute of higher Management of Tunis, University of Tunis Abstract The aim of this paper is to study the relationship between earnings management and the liquidity of the Tunisian market.
Stock liquidity providers (market makers or specialists) for firms that manage earnings face greater uncertainty about the true value of their inventory of stocks of such firms and a possible of loss while trading against more informed traders. Earnings management can accrual- based earnings management aspects and management of real benefit to be evaluated; Therefore, the aim of this study is to estimate the accrual-based earnings management and gain real management and its effects on liquidity of companies listed on the Stock Exchange in Tehran. We provide direct evidence that stock liquidity helps to deter earnings management via enhancing governance by long-term institutional investors through trading and direct intervention, and via facilitating short selling to discipline managers. The effect is stronger in firms that do not pay dividends. In fact, earnings management undermines the quality of the financial information disseminated to the financial market, which leads to a high level of information asymmetry, a low level of trust and credibility with investors and therefore a decrease in liquidity.