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Does Earnings Management Affect Firms’ Investment Decisions?
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Does Earnings Management Affect Firms’ Investment Decisions? (2008)Does Earnings Management Affect Firms’ In…Detecting Earnings Management (2012)Detecting Earnings ManagementThe cost of capital, corporation finance and the theory of investment (2008)The cost of capital, corporat…Over-investment of free cash flow (2006)Over-investment of free cash …Determinants of market reactions to restatement announcements (2003)Determinants of market reacti…Discussion of the Quality of Accruals and Earnings: The Role of Accrual Estimation Errors (2002)Discussion of the Quality of …Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators (2000)Earnings Management: Reconcil…A Review of the Earnings Management Literature and Its Implications for Standard Setting (1999)A Review of the Earnings Mana…The Influence of Institutional Investors on Myopic R&D Investment Behavior (1998)The Influence of Institutiona…Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? (1997)Do Investment-Cash Flow Sensi…Capital-Market Imperfections and Investment (1997)Capital-Market Imperfections …Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC* (1996)Causes and Consequences of Ea…Detecting Earnings Management. (1995)Detecting Earnings Management.Tobin's Marginal q and Average q: A Neoclassical Interpretation (1982)Tobin's Marginal q and Averag…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Investigating Causal Relations by Econometric Models and Cross-spectral Methods (1969)Investigating Causal Relation…The Cost of Capital, Corporation Finance and the Theory of Investment (1958)The Cost of Capital, Corporat…Mandatory CSR and sustainability reporting: economic analysis and literature review (2021)Mandatory CSR and sustainabil…The Effects of Financial Reporting and Disclosure on Corporate Investment: A Review (2019)The Effects of Financial Repo…Transparency and firm innovation (2018)Transparency and firm innovat…The real effects of mandated information on social responsibility in financial reports: Evidence from mine-safety records (2017)The real effects of mandated …Narcissism is a bad sign: CEO signature size, investment, and performance (2017)Narcissism is a bad sign: CEO…Financial Statement Comparability and the Efficiency of Acquisition Decisions (2017)Financial Statement Comparabi…Proxies and Databases in Financial Misconduct Research (2016)Proxies and Databases in Fina…Accounting conservatism and firm investment efficiency (2015)Accounting conservatism and f…Management Forecast Quality and Capital Investment Decisions (2013)Management Forecast Quality a…Financial reporting quality, debt maturity and investment efficiency (2013)Financial reporting quality, …Financial Reporting Quality of U.S. Private and Public Firms (2013)Financial Reporting Quality o…Financial Reporting Quality and Labor Investment Efficiency (2013)Financial Reporting Quality a…Does Investment Efficiency Improve after the Disclosure of Material Weaknesses in Internal Control over Financial Reporting? (2013)Does Investment Efficiency Im…Board Interlocks and Earnings Management Contagion (2012)Board Interlocks and Earnings…Detecting Earnings Management: A New Approach (2011)Detecting Earnings Management…The Economics of Fraudulent Accounting (2007)The Economics of Fraudulent A…Earnings Management During Import Relief Investigations (1991)The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems (1993)Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature (2001)The economic implications of corporate financial reporting (2005)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)On Persistence in Mutual Fund Performance (1997)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Corporate financing and investment decisions when firms have information that investors do not have (1984)Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)The Financial Accelerator in a Quantitative Business Cycle Framework (1998)Managing with Style: The Effect of Managers on Firm Policies (2003)New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index (2010)DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES (1956)The Pricing of Options and Corporate Liabilities (1973)Law and Finance (1998)Accounting earnings and cash flows as measures of firm performance (1994)Debt covenant violation and manipulation of accruals (1994)Earnings management to avoid earnings decreases and losses (1997)Earnings management and investor protection: an international comparison (2003)Earnings Management through Real Activities Manipulation (2003)Performance matched discretionary accrual measures (2005)Time to Build and Aggregate Fluctuations (1982)The Impact of Uncertainty Shocks (2009)ON THE PRICING OF CORPORATE DEBT: THE RISK STRUCTURE OF INTEREST RATES* (1974)The Capital Structure Puzzle (1984)A Survey of Corporate Governance (1997)Oil and the Macroeconomy since World War II (1983)Giving Content to Investor Sentiment: The Role of Media in the Stock Market (2007)Testing for Granger non-causality in heterogeneous panels (2012)
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References

  • 1969Investigating Causal Relations by Econometric Models and Cross-spectral Methods22,971 cited
  • 1958The Cost of Capital, Corporation Finance and the Theory of Investment14,494 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 2008The cost of capital, corporation finance and the theory of investment8,614 cited
  • 1997Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?6,790 cited
  • 1995Detecting Earnings Management.6,532 cited
  • 1999A Review of the Earnings Management Literature and Its Implications for Standard Setting4,637 cited
  • 1996Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC*4,076 cited
  • 2012Detecting Earnings Management3,821 cited
  • 1982Tobin's Marginal q and Average q: A Neoclassical Interpretation3,178 cited
  • 1998The Influence of Institutional Investors on Myopic R&D Investment Behavior3,013 cited
  • 2006Over-investment of free cash flow2,918 cited
  • 1997Capital-Market Imperfections and Investment2,600 cited
  • 2000Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and Regulators1,932 cited
  • 2002Discussion of the Quality of Accruals and Earnings: The Role of Accrual Estimation Errors

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1,615 cited
  • 2003Determinants of market reactions to restatement announcements1,259 cited
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