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Identifier to cite or link to this item: https://hdl.handle.net/10086/31299

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Title
Earnings Management and Stock Market Listing
Creator
Creator Name
Kim, Hyonok Kim, Hyonok
Affiliation
Affiliation Name
Tokyo Keizai University
Creator Name
Yasuda, Yukihiro Yasuda, Yukihiro
安田, 行宏 安田, 行宏
Affiliation
Affiliation Name
Hitotsubashi University
Editor
Contributor Name
Hitotsubashi University Center for Financial Research
Key Word
Earnings Management
Myopic
Short-termism
Stock market pressure
Unlisted firms
Private firms
JEL
D80
G21
G31
G32
Abstract
We provide the first large sample comparison of earnings management by Japanese listed and unlisted firms. Based on the theoretical predictions by Stein (1989), we empirically examine whether managers’ myopic behaviors exist through inflating current earnings at the expense of long-term earnings. We find that listed firms are more likely to engage in earnings management. We also find that firm managers are more likely to manage earnings as the information content of current earnings about future earnings (stock price) increases. More importantly, we note that this manipulation is pronounced only for listed firms. This is the first study that empirically shows the market pressure for raising stock price induces earnings manipulation.
Publisher
Hitotsubashi University Center for Financial Research
Issued Date
2020-07-21
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Working Paper Series ; No. G-1-24
Number of Pages
35
Appears in Collections
Working Paper Series / Hitotsubashi University Center for Financial Research
URL
https://hdl.handle.net/10086/31299