Do firms' earnings management practices affect their equity liquidity?

被引：18
作者：
Chung, Huimin [3 ]
Sheu, Her-Jiun [4 ]
Wang, Juo-Lien [1 ,2 ]
机构：
[1] Natl Chiao Tung Univ, Dept Management Sci, Hsinchu 30050, Taiwan
[2] China Univ Technol, Dept Finance, Hu Kou, Taiwan
[3] Natl Chiao Tung Univ, Grad Inst Finance, Hsinchu, Taiwan
[4] Natl Chi Nan Univ, Dept Banking & Finance, Hsinchu, Taiwan
来源：
FINANCE RESEARCH LETTERS | 2009年 / 6卷 / 03期
关键词：
Equity liquidity; Adverse selection costs; Earnings management; INVESTOR PROTECTION; SECURITIES; ACCRUALS; SERVICES; QUALITY; MARKETS; DEALER; NYSE;
D O I：
10.1016/j.frl.2009.03.003
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study investigates the relationship between earnings management and equity liquidity, positing that as incentives arise for the manipulation of firm performance through earnings management (due partly to conflicts of interest between firm insiders and outsiders), greater earnings management may signal higher adverse selection costs. If earnings manipulation reveals aggressive accounting practices, liquidity providers tend to widen bid-ask spreads to protect themselves. The empirical results indicate that companies with higher earnings management suffer lower equity liquidity. (C) 2009 Elsevier Inc. All rights reserved.
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页码：152 / 158
页数：7
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