SP |
Company share price i at the end of year t−1 divided by the total assets of firm i at the end of t−1 |
Cohen, Dey and Lys (2008)Cohen, D. A., Dey, A., & Lys, T. Z. (2008). Real and accrual‐based earnings management in the pre‐and post‐Sarbanes‐Oxley periods. The Accounting Review, 83(3), 757–787. https://doi.org/10.2308/accr.2008.83.3.757. https://doi.org/10.2308/accr.2008.83.3.7...
; Dechow, Ge and Schrand (2010)Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2-3), 344–401. https://doi.org/10.1016/j.jacceco.2010.09.001. https://doi.org/10.1016/j.jacceco.2010.0...
; Chen et al. (2009Chiu, P. C., Teoh, S. H., & Tian, F. (2013). Board interlocks and earnings management contagion. The Accounting Review, 88(3), 915–944. doi: 10.2308/accr-50369. https://doi.org/10.2308/accr-50369...
; 2010)Chen, R., Dyball, M. C., & Wright, S. (2009). The link between board composition and corporate diversification in Australian corporations. Corporate Governance: An International Review, 17(2), 208–223. doi: 10.1111/j.1467-8683.2009.00734.x. https://doi.org/10.1111/j.1467-8683.2009...
|
MTB |
(Market value of year t−1)/(Book value in year t−1) |
|
ROA |
(Net Operating Profit in year t−1)/(Total assets in year t−1) |
Chen et al. (2009Chiu, P. C., Teoh, S. H., & Tian, F. (2013). Board interlocks and earnings management contagion. The Accounting Review, 88(3), 915–944. doi: 10.2308/accr-50369. https://doi.org/10.2308/accr-50369...
; 2010)Chen, R., Dyball, M. C., & Wright, S. (2009). The link between board composition and corporate diversification in Australian corporations. Corporate Governance: An International Review, 17(2), 208–223. doi: 10.1111/j.1467-8683.2009.00734.x. https://doi.org/10.1111/j.1467-8683.2009...
; Doukakis (2014) |
GROWTH |
|
Roychowdhury (2006)Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370. doi: 10.1016/j.jacceco.2006.01.002. https://doi.org/10.1016/j.jacceco.2006.0...
; Cohen, Dey and Lys (2008)Cohen, D. A., Dey, A., & Lys, T. Z. (2008). Real and accrual‐based earnings management in the pre‐and post‐Sarbanes‐Oxley periods. The Accounting Review, 83(3), 757–787. https://doi.org/10.2308/accr.2008.83.3.757. https://doi.org/10.2308/accr.2008.83.3.7...
; Chen et al. (2009Chiu, P. C., Teoh, S. H., & Tian, F. (2013). Board interlocks and earnings management contagion. The Accounting Review, 88(3), 915–944. doi: 10.2308/accr-50369. https://doi.org/10.2308/accr-50369...
; 2010)Chen, R., Dyball, M. C., & Wright, S. (2009). The link between board composition and corporate diversification in Australian corporations. Corporate Governance: An International Review, 17(2), 208–223. doi: 10.1111/j.1467-8683.2009.00734.x. https://doi.org/10.1111/j.1467-8683.2009...
|
SIZEBD |
Number of audit committee members in year t |
Graham et al. (2005)Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1-3), 3–73. https://doi.org/10.1016/j.jacceco.2005.01.002. https://doi.org/10.1016/j.jacceco.2005.0...
; Dechow, Ge and Schrand (2010)Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2-3), 344–401. https://doi.org/10.1016/j.jacceco.2010.09.001. https://doi.org/10.1016/j.jacceco.2010.0...
; Ge and Kim (2014)Ge, W., & Kim, J. B. (2014). Boards, takeover protection, and real earnings management. Review of Quantitative Finance and Accounting, 43(4), 651–682. doi: 10.1007/s11156-013-0388-2. https://doi.org/10.1007/s11156-013-0388-...
|
INDBDDM |
The number of independent directors (those not linked to the company management) divided by the number of directors of a company i in year t |
Ge and Kim (2014)Ge, W., & Kim, J. B. (2014). Boards, takeover protection, and real earnings management. Review of Quantitative Finance and Accounting, 43(4), 651–682. doi: 10.1007/s11156-013-0388-2. https://doi.org/10.1007/s11156-013-0388-...
; Achleitner et al. (2014)Achleitner, A. K., Günther, N., Kaserer, C., & Siciliano, G. (2014). Real earnings management and accrual-based earnings management in family firms. European Accounting Review, 23(3), 431–461. https://doi.org/10.1080/09638180.2014.895620. https://doi.org/10.1080/09638180.2014.89...
|
EXPBDDM |
The number of board members with an academic background in accounting, auditing and finance divided by the number of a company i directors in year t
|
|
DEV |
|
Chen et al. (2009Chiu, P. C., Teoh, S. H., & Tian, F. (2013). Board interlocks and earnings management contagion. The Accounting Review, 88(3), 915–944. doi: 10.2308/accr-50369. https://doi.org/10.2308/accr-50369...
; 2010)Chen, R., Dyball, M. C., & Wright, S. (2009). The link between board composition and corporate diversification in Australian corporations. Corporate Governance: An International Review, 17(2), 208–223. doi: 10.1111/j.1467-8683.2009.00734.x. https://doi.org/10.1111/j.1467-8683.2009...
|
SIZE |
Natural logarithm of total asset of a company i at the beginning of year t
|
Graham et al. (2005)Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1-3), 3–73. https://doi.org/10.1016/j.jacceco.2005.01.002. https://doi.org/10.1016/j.jacceco.2005.0...
; Cohen, Dey and Lys (2008)Cohen, D. A., Dey, A., & Lys, T. Z. (2008). Real and accrual‐based earnings management in the pre‐and post‐Sarbanes‐Oxley periods. The Accounting Review, 83(3), 757–787. https://doi.org/10.2308/accr.2008.83.3.757. https://doi.org/10.2308/accr.2008.83.3.7...
|
IND (Industry) |
Industrial goods, construction and transportation, cyclic consumption, non-cyclic consumption, basic materials, oil, gas and biofuel, information technology, telecommunications and public utility |
Graham et al. (2005)Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40(1-3), 3–73. https://doi.org/10.1016/j.jacceco.2005.01.002. https://doi.org/10.1016/j.jacceco.2005.0...
; Roychowdhury (2006)Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370. doi: 10.1016/j.jacceco.2006.01.002. https://doi.org/10.1016/j.jacceco.2006.0...
, Cohen and Zarowin (2010)Cohen, D. A., & Zarowin, P. (2010). Accrual-based and real earnings management activities around seasoned equity offerings. Journal of Accounting and Economics, 50(1), 2–19. doi: 10.1016/j.jacceco.2010.01.002. https://doi.org/10.1016/j.jacceco.2010.0...
|
YEAR |
2010, 2011, 2012, 2013, 2014 and 2015 |