Working Paper

Earnings Inflation Through Accruals and Real Activity Manipulation: Its Prevalence at the Time of an SEO and the Financial Market Consequences

Natalie Mizik and Robert Jacobson

Jan 1, 2008

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Assesses whether firms inflate earnings through accounting accruals manipulation and/or through real activity earnings management (i.e., myopic management) at the time of seasoned equity offerings, and how the financial markets react to these behaviors.

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