CEO Deception Evidence By Financial Reporting

• In Event: Financial Accounting and Reporting

Abstract

This study uses discretionary accruals and earnings management methods to identify financial reporting chief executive officer deception measures. Using models similar to early studies, this investigation finds that firms with a higher rank of discretionary accruals are associated with lower earning persistence regarding accrual earnings. However, negative association with rank real earnings management variables related to cash earnings are not found. A positive association is found with rank real earnings management in the sensitivity analysis. Suggesting, overall, earnings are less persistent when associated with higher rank discretionary accruals.

Authors

• Jose Vega, Stephen F. Austin State University

• Mary Fischer, University of Texas at Tyler

• Dennis M Lopez, University of Texas-San Antonio