Abstract
We examine whether managers alter earnings management behavior, in the case of mergers and acquisitions, following the introduction of new pension disclosure standards under SFAS 132R, effective December 15, 2003. We find managers do set lower rate of return (ERR) assumptions on pension assets under the new pension accounting standards. However, managers also become more sensitive to opportunities to boost reported earnings by inflating ERR. Managers more actively exploit such opportunities when pension assets are large relative to earnings measures, i.e., when potential gains from earnings management are large.
| Original language | English |
|---|---|
| Pages (from-to) | 1-42 |
| Number of pages | 42 |
| Journal | Advances in Decision Sciences |
| Volume | 22(A) |
| Online published | 16 Oct 2018 |
| DOIs | |
| Publication status | Published - Dec 2018 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 1 No Poverty
Research Keywords
- defined benefit pension plans
- earnings management
- mergers and acquisitions
- pension assumptions
- disclosure standards
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