Abstract

http://ssrn.com/abstract=1927427
 
 

Citations (2)



 


 



Competition and Financial Accounting Misreporting


Karthik Balakrishnan


London Business School

Daniel A. Cohen


University of Texas at Dallas - Naveen Jindal School of Management

September 30, 2013


Abstract:     
We show that, on average, product market competition acts as a disciplining force constraining managers from misreporting accounting information. Further, in a quasi-natural experiment that uses shifts in import tariffs to identify intensification of competition, difference-in-difference estimations support the disciplining effect of competition on misreporting. Our findings are robust across alternate measures of misreporting including restatements and accounting irregularities as well as to measures of product market competition including those based on the U.S. Census data.

Number of Pages in PDF File: 52

Keywords: Product Market Competition, Disclosure, Financial Reporting Quality, Earnings Restatements, Tariffs

JEL Classification: D4, G34, L1, M40, M41

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Date posted: September 15, 2011 ; Last revised: October 2, 2013

Suggested Citation

Balakrishnan, Karthik and Cohen, Daniel A., Competition and Financial Accounting Misreporting (September 30, 2013). Available at SSRN: http://ssrn.com/abstract=1927427 or http://dx.doi.org/10.2139/ssrn.1927427

Contact Information

Karthik Balakrishnan
London Business School ( email )
Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom
Daniel A. Cohen (Contact Author)
University of Texas at Dallas - Naveen Jindal School of Management ( email )
P.O. Box 830688
Richardson, TX 75083-0688
United States
972-883-4772 (Phone)
972-883-6811 (Fax)
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