Moreira, José António - Faculdade de Economia, Universidade do Porto - 2006
In this paper I analyze the interaction between firms’ earnings management behavior and conservatism. I predict that … firms having conservatism-related bad news in the period have more pervasive earnings management than firms having good news …. Departing from Burgstahler and Dichev (1997) methodology to detect earnings management, and taking the sign of market returns as …