The extensive literature on earnings management largely focuses on accrual-based earnings management, while earning management may be done through accruals, real activities, or both. This study examines how common is using real activities and accruals as substitutes in managing earnings in Iran. The sample contains208earnings management suspect firm-years over the period 1383–1391. For hypothesises testing, this study conducts the Heckman two-step procedure. The results suggest that managers somewhat trade off the two earnings management methods based on their relative costs. In addition, results provide evidence that managers adjust the level of accrual-based earnings management according to the level of real activities manipulation realized.
rahmani, A., & Ramsheh, M. (2014). Trade-off between Accrual-based Earnings Management and Real Activities Manipulation. Accounting and Auditing Review, 20(4), 39-60. doi: 10.22059/acctgrev.2014.36587
MLA
ali rahmani; Manijeh Ramsheh. "Trade-off between Accrual-based Earnings Management and Real Activities Manipulation", Accounting and Auditing Review, 20, 4, 2014, 39-60. doi: 10.22059/acctgrev.2014.36587
HARVARD
rahmani, A., Ramsheh, M. (2014). 'Trade-off between Accrual-based Earnings Management and Real Activities Manipulation', Accounting and Auditing Review, 20(4), pp. 39-60. doi: 10.22059/acctgrev.2014.36587
VANCOUVER
rahmani, A., Ramsheh, M. Trade-off between Accrual-based Earnings Management and Real Activities Manipulation. Accounting and Auditing Review, 2014; 20(4): 39-60. doi: 10.22059/acctgrev.2014.36587
)