La gestion stratégique des résultats. Le cas des firmes publiant des prévisions lors d'un premier appel public à l'épargne

Denis Cormier and Michel Magnan

ACCRA, 1995, vol. 1, issue 1, 45-61

Abstract: In this paper, we investigate the motivation for managers to engage in strategic earnings management following the issue of forecasts for purposes of initials public offerings (IPO?s). Firms issuing forecasts in their prospectuses are expected to differ from non-forecasters in their level of earnings management during the year following the public offering. Results from a sample of Quebec IPO firms indicate that earnings management is driven by contractual obligations and that the decision to include a forecast influences a firm?s subsequent accruals behaviour. The study provides further evidence as to the validity of contracting hypotheses when attempting to explain managers? motivation underlying accounting decisions. This research gives some support for positive accounting theory in a new and unique context in which forecasts are identified as a form of implicit contract between a firm and its contracting parties.

Keywords: earnings management; accounting choices; accruals; positive accounting theory; earnings forecasts (search for similar items in EconPapers)
Date: 1995
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