EFFECT OF BANK MONITORING ON EARNINGS MANAGEMENT OF THE BORROWING FIRM: AN EMPIRICAL INVESTIGATION

Autor:	Arun J. Prakash, Anand K. Jha, Siddharth Shankar
Rok vydání:	2015
Předmět:	Earnings management Accrual business.industry Accounting Economics Absolute value (algebra) business Finance Test (assessment)
Zdroj:	Journal of Financial Research. 38:219-254
ISSN:	0270-2592
DOI:	10.1111/jfir.12055
Popis:	The literature on bank monitoring posits that strong bank monitoring can either increase or decrease the earnings management of the borrowing firm. We test these two competing hypotheses and find that earnings management (measured by the absolute value of the discretionary accruals) is higher when monitoring is strong—unless the firm is close to default. This result suggests that it might not be appropriate to view bank monitoring as always curbing corporate misbehavior. Our findings are based on examining 22,526 financial statements of private and public firms in India between 2001 and 2009.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::d1ea1cd73356521d44d2eb0f929b8846 https://doi.org/10.1111/jfir.12055 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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