 Processual earnings management: A study of R&D spending of french listed companiesGestion processuelle des résultats: une études des dépenses de R&D des entreprises françaises cotéesGuillaume Dumas ()
Post-Print from HAL Abstract: Two earnings management techniques are based on R&D expenditures: (i) reducing R&D spending and (ii) capitalization of R&D spend-ing. In this paper, we examine whether both techniques are used by French firms to meet earnings thresholds (zero earnings and prior year earnings). Firstly, we study each technique separately. Our results show that R&D spending iscapitalized in order to meet these thresholds, and managers reduce R&D in order to meet them. We then investigate whether managers use the two earnings management techniques in a coordinated way, and show that they are used in combination. More precisely, these earnings management techniques are substitutes for each other: low use of one is balanced by greater use of the other. We contribute to the literature by showing an earnings management process in which managers combine more than one earnings management technique. Keywords: r&d; earnings management; real earnings management; accrual-based earnings management; R&D; gestion des résultats; gestion réelle des résultats; gestion des résultats par les choix comptables (search for similar items in EconPapers) Published in Comptabilité Contrôle Audit / Accounting Auditing Control, 2017, 2 (23), p111-p141. ⟨10.3917/cca.232.0111⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03018818 DOI: 10.3917/cca.232.0111 Access Statistics for this paper More papers in Post-Print from HAL |
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