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Earnings Manipulation and Risky Investment

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dc.contributor.author Wang, Hanqing
dc.date.accessioned 2015-02-11T21:38:39Z
dc.date.accessioned 2022-07-06T22:33:42Z
dc.date.available 2015-02-11T21:38:39Z
dc.date.available 2022-07-06T22:33:42Z
dc.date.copyright 6/03/2006
dc.date.issued 2006
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/18940
dc.description.abstract This paper develops a formal model to study earnings manipulation. It analyzes the effects of real earnings auditor quality and at-risk incentive on management's earnings manipulation decision. It shows that the management has the incentive to smooth corporate earnings even when the employment contract is linear. It also demonstrates that adding the ability to manipulate earnings to the principal-agent model drastically changes the management's attitude towards risk. The management will become risk seeking in the company's earnings when cumulative earnings management in previous periods is high even if the management has a risk-averse utility function. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.rights Permission to publish research outputs of the New Zealand Institute for the Study of Competition and Regulation has been granted to the Victoria University of Wellington Library. Refer to the permission letter in record: https://ir.wgtn.ac.nz/handle/123456789/18870 en_NZ
dc.title Earnings Manipulation and Risky Investment en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit New Zealand Institute for the Study of Competition and Regulation en_NZ
vuwschema.contributor.unit Victoria Business School: Orauariki en_NZ
vuwschema.subject.anzsrcfor 149999 Economics not elsewhere classified en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 389999 Other economics not elsewhere classified en_NZ

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