RandD cuts and subsequent reversals: meeting or beating quarterly analyst forecasts

Among firms that meet or beat earnings expectations, we find that cuts to RandD spending are more prevalent in Q4 relative to other interim quarters. This is consistent with the relative costs of real-activities management (accruals-based earnings management) decreasing (increasing) in Q4 due to the...

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Bibliographic Details
Published in:The European accounting review 2015-01, Vol.24 (1), p.147-166
Main Authors: Shon, John, Yan, Meng
Format: Article
Language:English
Subjects:
Costs
Earnings
Financial management
Forecasts
Research and development
Value
Online Access:Get full text
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