External financing and earnings management: Evidence from international data

Yuyang Zhang, Konari Uchida, Liping Dong

研究成果: Contribution to journalArticle査読

2 被引用数 (Scopus)

抄録

Corporate financing conditions in the external capital market are significantly affected by information asymmetry, while internal financing is not. Given that earnings information influences market perceptions regarding firms’ quality, firms relying on external financing should have incentives to manage earnings to improve their financing conditions. This study investigates the effect of corporate external financing behavior on earnings management. Using a sample comprising 75,790 observations of 12,874 firms in 43 countries, we find that accrual-based and real earnings management are positively associated with firms’ reliance on external financing. This positive relationship holds especially true for firms that rely on equity rather than debt financing. We argue that reliance on external financing (especially equity financing), which is subject to problems arising from information asymmetry, generates a motive for earnings management.

本文言語英語
論文番号101275
ジャーナルResearch in International Business and Finance
54
DOI
出版ステータス出版済み - 12 2020

All Science Journal Classification (ASJC) codes

  • ビジネス、管理および会計(その他)
  • 財務

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