Show simple item record

dc.contributor.authorHealy, Paul Murray
dc.contributor.authorSerafeim, Georgios
dc.contributor.authorSrinivasan, Suraj
dc.contributor.authorYu, Gwen Gwen
dc.date.accessioned2014-11-25T18:34:32Z
dc.date.issued2014-11-25
dc.identifier.citationHealy, Paul M., George Serafeim, Suraj Srinivasan, and Gwen Yu. "Market Competition, Earnings Management, and Persistence in Accounting Profitability Around the World." Review of Accounting Studies (forthcoming).en_US
dc.identifier.issn1380-6653en_US
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:13426864
dc.description.abstractWe examine how cross-country differences in product, capital, and labor market competition, and earnings management affect mean reversion in accounting return on assets. Using a sample of 48,465 unique firms from 49 countries, we find that accounting returns mean revert faster in countries where there is more product and capital market competition, as predicted by economic theory. Country differences in labor market competition and earnings management are also related to mean reversion in accounting returns—but the relation varies with firm performance. Country labor competition increases mean reversion when unexpected returns are positive, but dampens it when unexpected returns are negative. Accounting returns in countries with higher earnings management mean revert more slowly for profitable firms and more rapidly for loss firms. Thus, earnings management incentives to slow or speed up mean reversion in accounting returns are accentuated in countries where there is a high propensity for earnings management. Overall, these findings suggest that country factors explain mean reversion in accounting returns and are therefore relevant for firm valuation.en_US
dc.language.isoen_USen_US
dc.relation.isversionofhttp://link.springer.com/article/10.1007/s11142-014-9277-8en_US
dash.licenseOAP
dc.subjectprofiten_US
dc.subjectperformanceen_US
dc.subjectsupply and industryen_US
dc.subjectfinancial statementsen_US
dc.subjectgovernment and politicsen_US
dc.subjectglobalized markets and industriesen_US
dc.titleMarket Competition, Earnings Management, and Persistence in Accounting Profitability Around the Worlden_US
dc.typeJournal Articleen_US
dc.description.versionAuthor's Originalen_US
dc.relation.journalReview of Accounting Studiesen_US
dash.depositing.authorHealy, Paul Murray
dc.date.available2014-11-25T18:34:32Z
dc.identifier.doi10.1007/s11142-014-9277-8*
workflow.legacycommentsNote that there is a duplicate that will be deleted from Srinivasan's queue - it has the wrong file and now that the first author has an AA we are depositing the correct version under his. Also note that the correct version does not have an attribution line (I will mention that to the first author to see if he wants a page added).en_US
dash.contributor.affiliatedYu, Gwen Gwen
dash.contributor.affiliatedSerafeim, Georgios
dash.contributor.affiliatedHealy, Paul
dash.contributor.affiliatedSrinivasan, Suraj


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record