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- W3125359568 abstract "We provide new evidence that firms appear to manage long-run earnings upward in order to manage rank and file employees’ perceptions of employment security. In particular, we exploit exogenous state-level changes in unemployment insurance benefits and test for partial unwinding of prior upward earnings management when benefits increase. Consistent with the hypothesis, we find a significant reduction in abnormal accruals, increased recognition of special items and write downs, and greater likelihood of net income-reducing restatements, following an increase in state-level unemployment benefits. A number of cross-sectional results are also consistent with the hypothesis." @default.
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- W3125359568 date "2016-02-01" @default.
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- W3125359568 title "Labor unemployment insurance and earnings management" @default.
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- W3125359568 doi "https://doi.org/10.1016/j.jacceco.2015.06.001" @default.
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