Earnings management constraints and the use of non-GAAP earnings management

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dc.contributor.advisor Cahan, S en
dc.contributor.author Kang, Wenming en
dc.date.accessioned 2016-01-15T03:20:45Z en
dc.date.issued 2015 en
dc.identifier.citation 2015 en
dc.identifier.uri http://hdl.handle.net/2292/28007 en
dc.description Full text is available to authenticated members of The University of Auckland only. en
dc.description.abstract This paper attempts to shed light upon management choice to engage in earnings management beyond the bounds of Generally Acceptable Accounting Practice. I examine how limitations in accrual earnings management capabilities and unexpected variations in real earnings management can drive more prominent use in non-GAAP earnings management (NGEM). NGEM is approximated using restatements as result of irregularities and AAER enforcements. I have conducted my analyses in three stages. First, I examine a subsample of firms with high probability in engaging in NGEM and conduct a longitudinal analysis on the REM behavior of these firms leading to the period of high probability of restatement. I find that there is indeed more aggressive use of REM leading to the period of high probability of restatement. Next I examined whether firms with unexpected REM fluctuations and constrained AEM behavior are more likely to engage in NGEM behavior. I find weak evidence of constraints in AEM drives NGEM. Finally I examine whether the use of industry specialist auditors can help deter constrained AEM firms from resorting to the use of NGEM. I find no evidence suggesting industry specialist auditors can restrain the use of NGEM for firms with constrained AEM. en
dc.publisher ResearchSpace@Auckland en
dc.relation.ispartof Masters Thesis - University of Auckland en
dc.relation.isreferencedby UoA99264871910702091 en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights Restricted Item. Available to authenticated members of The University of Auckland. en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.rights.uri http://creativecommons.org/licenses/by-nc-sa/3.0/nz/ en
dc.title Earnings management constraints and the use of non-GAAP earnings management en
dc.type Thesis en
thesis.degree.discipline Accounting and Finance en
thesis.degree.grantor The University of Auckland en
thesis.degree.level Masters en
dc.rights.holder Copyright: The Author en
pubs.elements-id 517004 en
pubs.record-created-at-source-date 2016-01-15 en

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http://creativecommons.org/licenses/by-nc-sa/3.0/nz/ Except where otherwise noted, this item's license is described as http://creativecommons.org/licenses/by-nc-sa/3.0/nz/


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