Earnings Management

1. Front Matter

   Pages I-XX

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2. Part

   1. Front Matter

      Pages 1-3

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   2. The Importance of Earnings

      • Joshua Ronen, Varda Yaari

      Pages 5-24

   3. Definition of Earnings Management

      • Joshua Ronen, Varda Yaari

      Pages 25-38

3. Part

   1. Front Matter

      Pages 39-55

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   2. The Management

      • Joshua Ronen, Varda Yaari

      Pages 57-112

   3. Users

      • Joshua Ronen, Varda Yaari

      Pages 113-185

   4. Gatekeepers

      • Joshua Ronen, Varda Yaari

      Pages 187-283

4. Part

   1. Front Matter

      Pages 285-292

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   2. Truth-Telling

      • Joshua Ronen, Varda Yaari

      Pages 293-315

   3. Smoothing

      • Joshua Ronen, Varda Yaari

      Pages 317-340

   4. Maximization and Minimization

      • Joshua Ronen, Varda Yaari

      Pages 341-367

5. Part

   1. Front Matter

      Pages 369-375

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   2. The Accruals Process

      • Joshua Ronen, Varda Yaari

      Pages 377-388

   3. The Accruals Methodology

      • Joshua Ronen, Varda Yaari

      Pages 389-432

   4. Modifications to the Jones Model and Alternative Methodologies

      • Joshua Ronen, Varda Yaari

      Pages 433-461

6. Back Matter

   Pages 463-581

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Earnings Management: Theory and Research is a scholarly study of earnings management. The book is aimed for scholars in accounting, finance, economics, and law. The authors address the following research questions: Why earnings are so important that firms feel compelled to manipulate them? What is earnings management? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? Can truthful reporting be considered earnings management? What are the motivations for smoothing and other reporting strategies? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?

• Finance
• Reporting
• accounting misreporting
• accruals management
• capital market research
• earnings management
• principal agent

From the reviews:

“Provides a comprehensive overview of academic research … . suited for most types of readers, from accounting researchers to managers. Still, I envision doctoral students and more experienced accounting scholars to be the primary target audience for this book. … In my opinion, this book is very well written and executed … . Within its scope, this book is an accounting scholar’s must-have, an interesting read providing us with not only the author’s perspective on earnings management but also a very useful literature overview.” (Vedran Capkun, The International Journal of Accounting, Vol. 46 (2), June, 2011)

• Stern School of Business, New York University, New York

  Joshua Ronen

• Earl G. Graves School of Business & Management, Morgan State University, Baltimore

  Varda Yaari

Dr. Joshua Ronen, a leader in economic analysis, has more than 30 years of experience in economics, finance, accounting and research. He is Research Professor of Accounting at Stern School of Business, New York University, which he joned as a faculty member in 1973. From 1970 to 1974, he served on the faculty of the University of Chicago Business School. He received his BA in Accounting and Economics from the Hebrew University and his Ph.D. (1969) in Business Administration from Stanford University. He is also a licensed CPA in Israel and has practiced public accounting for seven years.

Dr. Ronen has served or is serving on numerous journals, including The Accounting Review, The Journal of Accounting Research, Accounting, Organizations and Society, Review of Quantitative Finance & Accounting, Journal of Accounting and Public Policy, The British Accounting Review, The Journal of International Financial Analysis. He also served as Editor-In-Chief of the Journal of Accounting, Auditing and Finance.

Dr. Varda Yaari is an Associate Professor at Morgan State University, Maryland, USA. 2002-2003: Senior Lecturer: Ben-Gurion University. 1998 – 2001: Lecturer: Ben-Gurion University. Coordinator of Accounting Area.

Dr. Yaari received his Ph.D. in Philosophy in 1989 from the Stern School of Business, NYU and his Master of Arts (Economics), 1979 from Tel-Aviv University.

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