Show simple item record

dc.contributor.authorBelski, William Houstonen_US
dc.date.accessioned2014-03-14T20:06:57Z
dc.date.available2014-03-14T20:06:57Z
dc.date.issued2004-05-28en_US
dc.identifier.otheretd-01282005-123514en_US
dc.identifier.urihttp://hdl.handle.net/10919/26054
dc.description.abstractThe purpose of this research is to examine whether managers of troubled firms engage in income-increasing earnings management for capital market purposes to maintain a listing on the NASDAQ National Market. Troubled firms are defined as those firms whose share price has fallen below the specified dollar-per-share minimum mandated by the market. The two hypotheses attempt to answer two separate, but interrelated questions: First, do managers of troubled firms engage in earnings management more in periods of distress than in periods of non-distress? And second, do managers of troubled firms engage in earnings management more than similar firms not in jeopardy of delisting? Both a time-series and cross-sectional approach is used to answer these questions. The initial grouping consisted of all NASDAQ National Market firms with a share price of $1 or below at some point during the period from March 1997 through September 2002. The final sample consisted of 215 firms for the time-series analysis and 495 firms for the cross-sectional analysis. Two accrual expectation models were used, including the Jones (1991) and the modified Jones Model (Dechow, Sloan, and Sweeney, 1995). The results were unable to confirm that managers engage in this behavior, and similar to the results of DeAngelo, DeAngelo, and Skinner (1994), the findings suggest that managersâ accounting choices primarily reflect their firmsâ financial difficulties, rather than attempts to inflate income through discretionary accruals. After controlling for reverse stock splits, dividend reductions, going-concern issues/bankruptcy, and changes in management, the models found significantly negative abnormal accruals. The dissertation concludes with a discussion of possible interpretations for the findings.en_US
dc.publisherVirginia Techen_US
dc.relation.haspartBelskiPHD.pdfen_US
dc.rightsI hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to Virginia Tech or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report.en_US
dc.subjectDelistingen_US
dc.subjectNASDAQen_US
dc.subjectEarnings Managementen_US
dc.subjectAbnormal Accrualsen_US
dc.subjectAccounting Choiceen_US
dc.titleAccounting Choice in Troubled Companies: An Examination of Earnings Management by NASDAQ Firms in Jeopardy of Delistingen_US
dc.typeDissertationen_US
dc.contributor.departmentAccounting and Information Systemsen_US
dc.description.degreePh. D.en_US
thesis.degree.namePh. D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen_US
thesis.degree.disciplineAccounting and Information Systemsen_US
dc.contributor.committeechairBrozovsky, John A.en_US
dc.contributor.committeememberKumar, Ramanen_US
dc.contributor.committeememberEasterwood, John C.en_US
dc.contributor.committeememberRichardson, Frederick M.en_US
dc.contributor.committeememberMaher, John J.en_US
dc.identifier.sourceurlhttp://scholar.lib.vt.edu/theses/available/etd-01282005-123514/en_US
dc.date.sdate2005-01-28en_US
dc.date.rdate2008-02-03
dc.date.adate2005-02-03en_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record