Moving Beyond Histogram Bin Frequencies as Prima Facie Evidence of Earnings Management (Or a Discussion of 'Understanding the 'Numbers Game'')
15 Pages Posted: 5 Aug 2019
Date Written: July 31, 2019
Bird, Karolyi, and Ruchti (2019) estimate a structural model of earnings management in the setting of meeting-or-beating the analyst consensus forecast. I provide an overview of their methods and findings, and then discuss the assumptions, benefits, and limitations of their approach.
Keywords: earnings management, analyst forecasts, meet-or-beat, earnings discontinuity
JEL Classification: M41, M48
Suggested Citation: Suggested Citation