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Earning Management and Cost stickiness

Authors: Jeong-Ho Koo; Seungah Song; Tae-Young Paik;

Earning Management and Cost stickiness

Abstract

This study investigates the effects of incentives for earnings management on the stickiness of selling, general, and administrative expenses. It first shows that cost behaviors are different for earnings management suspect firms and non-suspect ones. Specifically earnings management suspect firms mitigate cost stickiness, when faced with declining sales. This result is probably due to managers aggressively cutting costs for earnings management or preparing for bad times when faced with declining sales.

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    7
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
7
Top 10%
Average
Average
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