Paper Info
Title
How Do Reporting Frequency And Analyst Perceptions Of Real Activities Manipulation (Ram) Influence Managers' Ram Behavior?
Abstract
Real Activities Manipulation (RAM) is an earnings management technique that is increasingly being used by managers. RAM is a purposeful action by managers to manipulate earnings by altering operations, finances, and investments. In this study, we investigate the effects of reporting frequency and the knowledge that financial analysts view RAM negatively on the likelihood of management engaging in RAM. Based on the results of an online experiment with 73 experienced managers and MBA students, we find that more frequent financial reporting significantly reduces managers' likelihood to engage in sales-related RAM when they are also informed that analysts view RAM negatively. As a result, the combination of more frequent reporting and the knowledge that analysts view RAM negatively, taken together, may assist in deterring managers' engagement in sales-related RAM.
Year
DOI
Venue
2021
10.2308/ISYS-19-030
JOURNAL OF INFORMATION SYSTEMS
Keywords
DocType
Volume
Real activities manipulation, reporting frequency, experiment
Journal
35
Issue
ISSN
Citations 
2
0888-7985
0
PageRank 
References 
Authors
0.34
0
3
Name
Order
Citations
PageRank
Fengchun Tang100.34
Christopher Kevin Eller200.34
Sandra J. Cereola300.34