Real Earnings Management and Cost of Debt: Evidence from Seasoned Bond Offerings
碩士 === 國立中正大學 === 會計與資訊科技研究所 === 102 === This paper examines the association between real earnings management (REM) and seasoned bond offerings (SBO). Many firms rely heavily on debt financing, and thus in order to decrease the cost of borrowing they have incentives to manage earnings upward before...
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| Format: | Others |
| Language: | en_US |
| Published: |
2014
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| Online Access: | http://ndltd.ncl.edu.tw/handle/gerjmz |
| Summary: | 碩士 === 國立中正大學 === 會計與資訊科技研究所 === 102 === This paper examines the association between real earnings management (REM) and seasoned bond offerings (SBO). Many firms rely heavily on debt financing, and thus in order to decrease the cost of borrowing they have incentives to manage earnings upward before issuing bonds. Using data from 1988 to 2011, the results of this study show that cost of debt is negatively related to the proxies for REM. This reveals that bondholders do not perceive REM as a form of opportunistic behavior, but instead as more efficient operating activity.
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