標題: Do firms' earnings management practices affect their equity liquidity?
作者: Chung, Huimin
Sheu, Her-Jiun
Wang, Juo-Lien
管理科學系
資訊管理與財務金融系 註:原資管所+財金所
Department of Management Science
Department of Information Management and Finance
關鍵字: Equity liquidity;Adverse selection costs;Earnings management
公開日期: 1-Sep-2009
摘要: This study investigates the relationship between earnings management and equity liquidity, positing that as incentives arise for the manipulation of firm performance through earnings management (due partly to conflicts of interest between firm insiders and outsiders), greater earnings management may signal higher adverse selection costs. If earnings manipulation reveals aggressive accounting practices, liquidity providers tend to widen bid-ask spreads to protect themselves. The empirical results indicate that companies with higher earnings management suffer lower equity liquidity. (C) 2009 Elsevier Inc. All rights reserved.
URI: http://dx.doi.org/10.1016/j.frl.2009.03.003
http://hdl.handle.net/11536/14169
ISSN: 1544-6123
DOI: 10.1016/j.frl.2009.03.003
期刊: FINANCE RESEARCH LETTERS
Volume: 6
Issue: 3
起始頁: 152
結束頁: 158
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