00Thaler_FM i-xxvi.qxd

appears to have been overlooked previously.)^24 For example, exactly zero EPS (or change in EPS or forecast error) occur with no ...

The best situation for our study would arise if the measures of location (median) and dispersion (interquartile range) proved to ...

dispersions of variables, such formulas imply a bin width of one penny (the minimum resolution for our data). 1.“Sustain Recent ...

The easily discernible pileup of observations at the zero thresh- old for ∆EPS is confirmed by the τ-statistic of 6.61.^26 The v ...

below the histogram in figure 18.6 for the different outcomes—see the dark shaded areas below the horizontal axis. As predicted ...

considerable jump between zero and one (especially the latter); thus it appears that managers strongly desire to be able to repo ...

C. Conditional Distributions: Interaction among Thresholds If executives pay attention to more than one threshold, as seems like ...

EARNINGS MANAGEMENT 655
  
     
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Possible discontinuity in the histograms is evaluated for each of our 12 conditions employing the τ-test used before for the uni ...

section focuses first on the ∆EPS threshold and then on the positive earn- ings threshold.^32 We examine the performance of the ...

∆EPS, then we may have difficulty discriminating earnings manipulation from overall behavior. Consider the regression of ∆EPSt+ ...

comparison, d 2 >c 2 as expected if heterogeneity in earnings growth among firms outweighs regression toward the mean effects ...

underperforms the miss-threshold group in the sample A as well as B, a re- sult indicative of strong EM. However, the lack of si ...

strong incentives for executives to manage earnings is hardly surprising. This analysis assesses the importance of thresholds fo ...

Appendix Testing for a Discontinuity in a Univariate Distribution Let xbe the variable of interest, such as the change in earnin ...

of τTis likely to be well approximated by the Student’s t-distribution under H 0 if the distribution of ∆p(xi) in RT is approxim ...

slope of the density function immediately to the left of T(=P) is significantly different from the corresponding slope (adjusted ...

References Abarbanell, J., and V. Bernard, 1992, Tests of analysts’ overreaction/underreaction to earnings information as an exp ...

Koopmans, L. H., 1974, The Spectral Analysis of Time Series, Academic Press. Kothari, S. P., and R. G. Sloan, 1992, Information ...

PART VI Corporate Finance ...