This study tests the hypothesis that firms which release their earnings report later than expected exhibit negative abnormal (discretionary) accruals than other firms. Prior research has documented that firms generally disclose 'good news' early and postpone the release of 'bad news'. We extend the existing accrual-based models for detecting earnings manipulation by testing the association between reporting lag and earnings management.
Scopus Subject Areas
- Business, Management and Accounting (miscellaneous)