The Accounting Review · 2009 · 157 citations · 42 references
BusinessAccountancyAccountingCorporate FinanceFinancial AccountingManagerial AccountingAccounting Policy AnalysisAgency Theory In AccountingBehavioral Corporate FinanceEarnings ManagementEarnings ReportingEquity-based CompensationAccounting Policy EffectsAccrual Earnings ManagementCorporate Pension PlansExecutive Compensation EffectsExecutive Pension PlansFirm Financial PerformanceFirm PerformanceRetirement
ABSTRACT: Empirical research on the impact of managerial retirement on discretionary accounting choices is inconclusive, with most studies finding no evidence of earnings management in the pre-retirement period. I argue that income-increasing accounting choices in final pre-retirement years are particularly appealing to managers whose pension depends on firm performance in these years. Using primary data on retired CEOs of Fortune 1000 firms, I investigate the impact of CEO pension plans on discretionary accruals. Consistent with the prediction, I find evidence of income-increasing earnings management in the pre-retirement period only when CEO pension is based on firm performance. I also report evidence of negative abnormal market reaction to CEO retirement in firms with performance-contingent CEO pensions.
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Common risk factors in the returns on stocks and bonds
Eugene F. Fama, Kenneth R. French · Journal of Financial Economics · 1993 · 27.7K citations
Earnings Management During Import Relief Investigations
Jennifer Jones · Journal of Accounting Research · 1991 · 8.6K citations
Business, Accountancy, Accounting +13
Detecting Earnings Management.
Patricia Dechow, Richard G. Sloan · The Accounting Review · 1995 · 5.9K citations · Full text
Business, Accountancy, Accounting +17