报告主题：The Consequences of Increasing the Scope of Managerial Judgement in Accounting Standards

报告人：汪泓 博士

时间：2016年10月27日（星期四），下午2:00-3:00

举行地点：综合楼802会议室

内容提要：

This paper investigates the consequences of increasing the scope of managerial judgment (ISMJ) in accounting standards via a difference-indifferences approach in the unique setting of China. A substantial increase in accruals-based earnings management is found after ISMJ, in addition to a decline in real activities-based earnings management resulting from temporarily increased sales, boosted inventory, and expense deferrals. In contrast, we find a significant increase in the relevance of accounting information. Further analysis reveals significant negative cumulative abnormal returns related to the announcement of accounting standards change over the short term. We also find a larger long-term increase in the crash risk of the stock prices of firms that engage in more accruals based earnings management after ISMJ. All of these effects are more pronounced in non-state-owned enterprises than in state-owned enterprises.