Advertisement

Journal of Management and Governance

, Volume 22, Issue 4, pp 981–1014 | Cite as

The impact of related party transactions on earnings management: some insights from the Italian context

  • Pier Luigi Marchini
  • Tatiana Mazza
  • Alice Medioli
Article
  • 216 Downloads

Abstract

Related party transactions have become a key issue as a result of recent financial scandals. This study examines whether firms use related party transactions for earnings management, and then, whether they try to minimize detection through the format of related party transactions disclosure. Firstly, we analyze the association between related party transactions structure (types and parties involved) and the probability of reporting small earnings increase. Related party transactions may have significant impact on, and implications for, earnings management. According to the agency theory, related party transactions are used opportunistically, while the efficient transaction hypothesis argues that related party transactions meet the economic needs of the business. We next investigate the association between the probability of reporting small earnings increases through related party transactions and disclosure quality. Disclosure quality should be studied in relation to impression management and investor attention; this approach takes account of the idea that earnings management behavior may influence the quality of disclosure as a possible way of lowering conflict of interest. In line with the agency theory, our findings show that revenue related party transactions are more likely to be used to manage earnings than other types of transaction; related party transactions with ultimate parents are associated with lower probability of reporting small earnings increases compared to operations with other related parties. Lastly, our results confirm that the decision to engage in earnings management is related to lower disclosure quality.

Keywords

Related party transactions Disclosure Earnings management Agency theory 

References

  1. Aharony, J., Yuan, H., & Wang, J. (2005). Related party transactions: A “real” means of earnings management and tunneling during the IPO process in China. Social Science Research Network, Working Paper Series. http://www.ssrn.com.
  2. Almeida, H., & Wolfenzon, D. (2006). A theory of pyramidal ownership and family business groups. Journal of Finance, 61(6), 2637–2680.Google Scholar
  3. Altamuro, J., Beatty, A. L., & Weber, J. (2005). The effects of accelerated revenue recognition on earnings management and earnings informativeness: Evidence from SEC Staff Accounting Bulletin No. 101. The Accounting Review, 80(2), 373–401.Google Scholar
  4. Bae, K. H., Kang, J. K., & Kim, J. M. (2002). Tunneling or value-added: Evidence from mergers by Korean business groups. Journal of Finance, 57(6), 2695–2740.Google Scholar
  5. Baek, J. S., Kang, J. K., & Park, K. S. (2004). Corporate governance and firm value: Evidence from the Korean financial crisis. Journal of Financial Economics, 71(2), 265–313.Google Scholar
  6. Bagnoli, M., Penno, M., & Watts, S. G. (2001). Auditing in the presence of outside sources of information. Journal of Accounting Research, 39, 435–447.Google Scholar
  7. Barron, O. E., Kile, C. O., & O’Keefe, T. B. (1999). MD&A quality as measured by the SEC and analysts’ earnings forecasts. Contemporary Accounting Research, 16(1), 75–109.Google Scholar
  8. Barth, M., Landsman, W., & Lang, M. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46, 467–498.Google Scholar
  9. Bar-Yosef, S., & Prencipe, A. (2013). The impact of corporate governance and earnings management on stock market liquidity in a highly concentrated ownership capital market. Journal of Accounting, Auditing and Finance, 28(3), 292–316.Google Scholar
  10. Berle, A. A., & Means, G. G. C. (1932). The modern corporation and private property. New York: Commerce Clearing House.Google Scholar
  11. Bertrand, M., Mehta, P., & Mullainathan, S. (2002). Ferreting out tunneling: An application to Indian business groups. The Quarterly Journal of Economics, 117(1), 121–148.Google Scholar
  12. Bonacchi, M., Cipollini, F., & Zarowin, P. (2014). Parents use of subsidiaries to ‘push down’ earnings management: Evidence from Italy. Social Science Research Network, Working Paper Series, SSRN. http://ssrn.com/abstract=2262042 or  https://doi.org/10.2139/ssrn.2262042.
  13. Brennan, N. M., Guillamon-Saorin, E., & Pierce, A. (2009). Impression management: Developing and illustrating a scheme of analysis for narrative disclosures—A methodological note. Accounting, Auditing and Accountability Journal, 22(5), 789–832.Google Scholar
  14. Brown, S. V., & Tucker, J. W. (2011). Large-sample evidence on firms’ year-over-year MD&A modifications. Journal of Accounting Research, 49(2), 309–346.Google Scholar
  15. Burgstahler, D., & Dichev, I. (1997). Earnings management to avoid earnings decreases and losses. Journal of Accounting and Economics, 24, 99–126.Google Scholar
  16. Burgstahler, D., Hail, L., & Leuz, C. (2006). The importance of reporting incentives: Earnings management in European private and public firms. The Accounting Review, 81, 983–1016.Google Scholar
  17. Butters, J. (2001). Chrysler plans to hit goal. Detroit: Detroit Free Press.Google Scholar
  18. Callahan, C. M., & Smith, R. E. (2005). How transparent are MD&A disclosures? Bank Accounting & Finance, 18(2), 7–17.Google Scholar
  19. Callen, J. L., Livnat, J., & Segal, D. (2006). Accounting restatements: Are they always bad news for investors? (Digest summary). Journal of Investing, 15(3), 57–68.Google Scholar
  20. Callen, J. L., Robb, S. W., & Segal, D. (2008). Revenue manipulation and restatements by loss firms. Auditing: A Journal of Practice & Theory, 27(2), 1–29.Google Scholar
  21. Cameran, M., Francis, J., Marra, A., & Pettinicchio, A. (2015). Are there adverse consequences of mandatory auditor rotation? Evidence from the Italian experience. Auditing: A Journal of Practice and Theory, 34(1), 1–24.Google Scholar
  22. Cameran, M., & Prencipe, A. (2011). Qualità della revisione contabile e tipo di revisore. Il caso delle società italiane non quotate. Economia and Management, 1, 99–115.Google Scholar
  23. Caramanis, C., & Lennox, C. (2008). Audit effort and earnings management. Journal of Accounting and Economics, 45, 116–138.Google Scholar
  24. Caylor, R. (2010). Strategic revenue recognition to achieve earnings benchmarks. Journal of Accounting and Public Policy, 29(1), 82–95.Google Scholar
  25. Cecchini, M., Aytug, H., Koehler, G. J., & Pathak, P. (2010). Making words work: Using financial text as a predictor of financial events. Decision Support Systems, 50(1), 164–175.Google Scholar
  26. Chang, S. J., & Hong, J. (2000). Economic performance of group-affiliated companies in Korea: Intra-group resource sharing and internal business transactions. Academy of Management Journal, 43(3), 429–448.Google Scholar
  27. Chen, Y., Chen, C. H., & Chen, W. (2009). The impact of related party transactions on the operational performance of listed companies in China. Journal of Economic Policy Reform, 12(4), 285–297.Google Scholar
  28. Chen, J. J., Cheng, P., & Xiao, X. (2011). Related party transactions as a source of earnings management. Applied Financial Economics, 21, 165–181.Google Scholar
  29. Chen, Y. M., & Chien, C. Y. (2007). Monitoring mechanism, corporate governance and related party transactions. Social Science Research Network, Working Paper Series. http://www.ssrn.com.
  30. Chen, C. W. K., & Yuan, H. Q. (2004). Earning management and capital resource allocation: Evidence from China’s accounting-based regulation of rights issue. Accounting Review, 79(3), 645–665.Google Scholar
  31. Cheng, P., & Chen, J. (2006). Related party transactions, expropriation and post-IPO performanceChinese evidence. Working Paper. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.556.5044&rep=rep1&type=pdf.
  32. Cheung, Y. L., Rau, P., & Strouraitis, A. (2006). Tunneling, propping and expropriation: Evidence from connected party transactions in Hong Kong. Journal of Financial Economics, 82(2), 343–386.Google Scholar
  33. Church, B. K., & Shefchik, L. B. (2012). PCAOB inspections and large accounting firms. Accounting Horizons, 26(1), 43–63.Google Scholar
  34. Claessens, S., Djankov, S., & Larry, L. (2000). The separation of ownership and control of East Asia corporations. Journal of Financial Economics, 58(1–2), 81–112.Google Scholar
  35. Claessens, S., & Fan, J. P. H. (2003). Corporate governance in Asia: A survey. International Review of Finance, 3(2), 71–103.Google Scholar
  36. Clarkson, P. M., Kao, J. L., & Richardson, G. D. (1999). Evidence that management discussion and analysis (MD&A) is a part of a firm’s overall disclosure package. Contemporary Accounting Research, 16(1), 111–134.Google Scholar
  37. Coase, R. H. (1937). The firm, the market and the law. Chicago: University of Chicago Press.Google Scholar
  38. Coffee, J. C. (2005). A theory of corporate scandals: Why the USA and Europe differ. Oxford Review of Economic Policy, 21(2), 198–211.Google Scholar
  39. Cole, C. J., & Jones, C. L. (2004). The usefulness of MD&A disclosures in the retail industry. Journal of Accounting, Auditing & Finance, 19(4), 361–388.Google Scholar
  40. Collins, J., Kemsley, D., & Lang, M. (1998). Cross-jurisdictional income shifting and earnings valuation. Journal of Accounting Research, Autumn, 36(2), 209–229.Google Scholar
  41. Corbella, S., Florio, C., Gotti, G., & Mastrolia, S. A. (2015). Audit firm rotation, audit fees and audit quality: The experience of Italian public companies. Journal of International Accounting, Auditing and Taxation, 25, 46.Google Scholar
  42. Courtis, J. K. (1998). Annual report readability variability: Tests of the obfuscation hypothesis. Accounting, Auditing and Accountability Journal, 11(4), 459–471.Google Scholar
  43. Dechow, P., Ge, W., & Schrand, C. M. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 10, 344–401.Google Scholar
  44. Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the sec. Contemporary Accounting Research, 13(1), 1–36.Google Scholar
  45. DeFond, M. L., & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17(1), 145–176.Google Scholar
  46. Demers, E., & Lev, B. (2001). A rude awakening: Internet shakeout in 2000. Review of Accounting Studies, 6, 331–359.Google Scholar
  47. Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. The Journal of Political Economy, 93, 1155–1177.Google Scholar
  48. Dyck, A., & Zingales, L. (2004). Private benefits of control: An international comparison. Journal of Finance, 59(2), 537–600.Google Scholar
  49. Emshwiller, J., & Smith, R. (2002). Murky waters: A primer on Enron partnerships. The Wall Street Journal, January 21.Google Scholar
  50. Enriques, L., & Volpin, P. (2007). Corporate governance reforms in continental Europe. The Journal of Economic Perspectives, 21(1), 117–140.Google Scholar
  51. Faccio, M., & Lang, L. H. P. (2002). The ultimate ownership of western European corporations. Journal of Financial Economics, 65, 365–395.Google Scholar
  52. Faccio, M., Lang, L. H. P., & Young, L. (2001). Dividends and expropriation. American Economic Review, 91, 54–78.Google Scholar
  53. Fan, J. P. H., & Goyal, V. K. (2006). On the patterns and wealth effects of vertical mergers. Journal of Business, 79(2), 877–902.Google Scholar
  54. Fisman, R., & Khanna, T. (2004). Facilitating development: The role of business groups. World Development, 32(4), 609–628.Google Scholar
  55. Francis, J., & Wang, D. (2008). The joint effect of investor protection and big 4 audits on earnings quality around the world. Contemporary Accounting Research, 25, 157–191.Google Scholar
  56. Francis, J. R., & Yu, M. D. (2009). Big 4 office size and audit quality. The Accounting Review, 84(5), 1521–1552.Google Scholar
  57. Frankel, R., Johnson, M., & Nelson, K. (2002). The relation between auditors’ fees for nonaudit services and earnings management. The Accounting Review, 77, 71–105.Google Scholar
  58. Friedman, E., Johnson, S., & Mitton, T. (2003). Propping and tunneling. Journal of Comparative Economics, 71(4), 732–750.Google Scholar
  59. Ge, W., Drury, D. H., Fortin, S., Liu, F., & Tsang, D. (2010). Value relevance of disclosed related party transactions. Advances in Accounting, Incorporating Advances in International Accounting, 26, 134–141.Google Scholar
  60. Goel, S., & Gangolly, J. (2012). Beyond the numbers: Mining the annual reports for hidden cues indicative of financial statement fraud. Intelligent Systems in Accounting, Finance and Management, 19(2), 75–89.Google Scholar
  61. Goel, S., Gangoly, J., Faerman, S., & Uzuner, O. (2010). Can linguistic predictors detect fraudulent financial filings? Journal of Emerging Technologies in Accounting, 7, 25–46.Google Scholar
  62. Gopalan, R., & Jayaraman, S. (2012). Private control benefits and earnings management: Evidence from insider controlled firms. Journal of Accounting Research, 50(1), 117–157.Google Scholar
  63. Gordon, E. A., & Henry, E. (2005). Related party transactions and earnings management. Social Science Research Network, Working Paper Series. http://www.ssrn.com.
  64. Gordon, E. A., Henry, E., Louwers, T. J., & Reed, B. J. (2007). Auditing related party transactions: A literature overview and research synthesis. Accounting Horizons, 21(1), 81–102.Google Scholar
  65. Gordon, E. A., Henry, E., & Palia, D. (2004). Related party transactions and corporate governance. Corporate Governance, 9, 1–27.Google Scholar
  66. Graham, R., Harvey, R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40, 3–73.Google Scholar
  67. Healy, P., & Palepu, K. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1–3), 405–440.Google Scholar
  68. Heckman, J. J. (1979). Statistical models for discrete panel data. Chicago: Department of Economics and Graduate School of Business, University of Chicago.Google Scholar
  69. Henry, E., Gordon, E., Reed, B., & Louwers, T. (2007). The role of related-party transactions in fraudulent financial reporting. Social Science Research Network, Working Paper Series, http://www.ssrn.com.
  70. Hu, S. H., Li, G., Xu, Y. H., & Fan, X. A. (2012). Effects of internal governance factors on cross-border-related party transactions of Chinese companies. Emerging Markets Finance & Trade, 48(1), 58–73.Google Scholar
  71. Humpherys, S., Moffitt, K. C., Burns, M. B., Burgoon, J. K., & Felix, W. F. (2011). Identification of fraudulent financial statements using linguistic credibility analysis. Decision Support Systems, 50, 585–594.Google Scholar
  72. Iatridis, G., & Kadorinis, G. (2009). Earnings management and firms financial motives: A financial investigation of UK listed firms. International Review of Financial Analyses, 18, 164–173.Google Scholar
  73. Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360.Google Scholar
  74. Jian, M., & Wong, T. J. (2004). Earnings management and tunneling though related party transactions: Evidence from Chinese corporate groups. Social Science Research Network, Working Paper Series. http://www.ssrn.com.
  75. Jian, M., & Wong, T. J. (2010). Propping through related party transactions. Review of Accounting Studies, 15, 70–105.Google Scholar
  76. Joh, S. W. (2003). Corporate governance and firm profitability: Evidence from Korea before the economic crisis. Journal of Financial Economics, 68(2), 287–322.Google Scholar
  77. Johnson, S., La Porta, R., Lopez-De-Silanes, F., & Shleifer, A. (2000). Tunneling. The American Economic Review, 90(2), 22–27.Google Scholar
  78. Johnstone, K., & Bedard, J. (2004). Audit firm portfolio management decisions. Journal of Accounting Research, 42, 659–690.Google Scholar
  79. Jones, J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29, 193–228.Google Scholar
  80. Khanna, T., & Palepu, K. (1997). Why focused strategy may be wrong in emerging markets. Harvard Business Review, 75(4), 41–51.Google Scholar
  81. Khanna, T., & Palepu, K. (2000). Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. The Journal of Finance, 55(2), 867–892.Google Scholar
  82. Khanna, T., & Yafeh, Y. (2005). Business groups and risk sharing around the world. The Journal of Business, 78(1), 301–340.Google Scholar
  83. Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2010). Intermediate accounting: IFRS edition (Vol. 2). Hoboken: Wiley.Google Scholar
  84. Kim, S. J. (2004). Bailout and conglomeration. Journal of Financial Economics, 71, 315–347.Google Scholar
  85. Kim, J. B., & Yi, C. H. (2006). Ownership structure, business group affiliation, listing status, and earnings management: Evidence from Korea. Contemporary Accounting Research, 23(2), 427–464.Google Scholar
  86. La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world. Journal of Finance, 54, 471–517.Google Scholar
  87. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1998). Law and finance. Journal of Political Economy, 106, 1131–1155.Google Scholar
  88. Lapointe-Antunes, P., Cormier, D., Magnan, M., & Gay-Angers, S. (2006). On the relationship between voluntary disclosure, earnings smoothing and the value relevance of earnings: The case of Switzerland. European Accounting Review, 15(4), 465–505.Google Scholar
  89. Leary, M. R., & Kowalski, R. M. (1990). Impression management: A literature review and two-component model. Psychological Bulletin, 107(1), 34–47.Google Scholar
  90. Lemmon, M. L., & Lins, K. V. (2003). Ownership structure, corporate governance, and firm value: Evidence from the East Asian financial crisis. The Journal of Finance, 58(4), 1445–1468.Google Scholar
  91. Lennox, C., Francis, J. R., & Wang, Z. (2012). Selection models in accounting research. The Accounting Review, 87(2), 589–616.Google Scholar
  92. Leuz, C., Lins, K., & Warnock, F. (2009). Do foreigners invest less in poorly governed firms? Review of Financial Studies, 22, 3245–3285.Google Scholar
  93. Leuz, C., Nanda, D., & Wysocki, P. (2003). Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69, 505–527.Google Scholar
  94. Li, F. (2008). Annual report readability, current earnings, and earnings persistence. Journal of Accounting and Economics, 45(2), 221–247.Google Scholar
  95. Lim, C. Y., & Tan, H. T. (2008). Non-audit service fees and audit quality: The impact of auditor specialization. Journal of Accounting Research, 46(1), 199–246.Google Scholar
  96. Lins, K. V. (2003). Equity ownership and firm value in emerging markets. Journal of Financial and Quantitative Analysis, 38(01), 159–184.Google Scholar
  97. Liu, Q., & Lu, Z. J. (2007). Corporate governance and earnings management in the Chinese listed companies: A tunneling perspective. Journal of Corporate Finance, 13, 881–906.Google Scholar
  98. Lo, A. W. Y., Wong, R. M. K., & Firth, M. (2010). Can corporate governance deter management from manipulating earnings? Evidence from related-party sales transactions in China. Journal of Corporate Finance, 16(2), 225–235.Google Scholar
  99. Markham, J. W. (2015). A financial history of modern U.S. corporate scandals: From Enron to reform. London: Routledge.Google Scholar
  100. Marquardt, C. A., & Wiedman, C. I. (2004). The effect of earnings management on the value relevance of accounting information. Journal of Business Finance & Accounting, 31(3–4), 297–332.Google Scholar
  101. Melis, A. (2005). Corporate governance failures: To what extent is Parmalat a particularly Italian case? Corporate Governance: An International Review, 13, 478–488.Google Scholar
  102. Mitton, T. (2002). A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis. Journal of Financial Economics, 64, 215–241.Google Scholar
  103. Moscariello, N. (2012). Related party transactions in continental European countries: Evidence from Italy. International Journal of Disclosure and Governance, 9(2), 126–147.Google Scholar
  104. Nekhili, M., & Cherif, M. (2009). Transactions avec les parties liées, caractéristiques de propriété et de gouvernance et performance des entreprises françaises. Comptabilité, Contrôle, Audit, 15(3), 55–89.Google Scholar
  105. Nelson, M., Elliott, J., & Tarpley, R. (2002). Evidence from auditors about managers’ and auditors’ earnings management decisions. The Accounting Review, 77(Supplement), 175–202.Google Scholar
  106. Nelson, M., Elliott, J., & Tarpley, R. (2003). How are earnings managed? Evidence from auditors. Accounting Horizons, 17(Supplement), 17–35.Google Scholar
  107. Neu, D. (1991). Trust, impression management and the public accounting profession. Critical Perspectives on Accounting, 2(3), 295–313.Google Scholar
  108. Neu, D., Warsame, H., & Pedwell, K. (1998). Managing public impressions: Environmental disclosures in annual reports. Accounting, Organizations and Society, 23(3), 265–282.Google Scholar
  109. Okuda, S. Y., & Shiiba, A. (2010). An evaluation of the relative importance of parent-only and subsidiary earnings in Japan: A variance decomposition approach. Journal of International Accounting Research, 9(1), 39–54.Google Scholar
  110. Phillips, J., Pincus, M., & Rego, S. (2003). Earnings management: New evidence based on deferred tax expense. The Accounting Review, 78, 491–521.Google Scholar
  111. Pizzo, M. (2013). Related party transactions under a contingency perspective. Journal of Management and Governance, 17(2), 309–330.Google Scholar
  112. Plummer, E., & Mest, D. P. (2001). Evidence on the management of earnings components. Journal of Accounting, Auditing & Finance, 16(4), 301–323.Google Scholar
  113. Rasmussen, S. J. (2013). Revenue recognition, earnings management, and earnings informativeness in the semiconductor industry. Accounting Horizons, 27(1), 91–112.Google Scholar
  114. Reiss, D. (1981). The family’s construction of reality. Cambridge: Harvard University Press.Google Scholar
  115. Sami, H., & Schwartz, B. (1992). Alternative pension liability disclosure and the effect on credit evaluation: An experiment. Behavioral Research in Accounting, 4, 49–62.Google Scholar
  116. Schlenker, B. R. (1980). Impression management: The self concept, social identity and interpersonal relations. Monterrey, CA: Brooks-Cole.Google Scholar
  117. Shen, C. H., & Chih, H. L. (2007). Earnings management and corporate governance in Asia’s emerging markets. Corporate Governance, 15(5), 999–1021.Google Scholar
  118. Sherman, H. D., & Young, S. D. (2001). Tread lightly through these accounting minefields. Harvard Business Review, 79(7), 129–135.Google Scholar
  119. Shin, H. H., & Park, Y. S. (1999). Financing constraints and internal capital markets: Evidence from Korean chaebols. Journal of Corporate Finance, 5(2), 169–194.Google Scholar
  120. Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737–783.Google Scholar
  121. Stallworth, H. L., & Braun, R. L. (2007). Computone Corporation: An instructional case in earnings management and revenue recognition. Issues in Accounting Education, 22(2), 319–332.Google Scholar
  122. Stubben, S. R. (2010). Discretionary revenues as a measure of earnings management. The Accounting Review, 85(2), 695–717.Google Scholar
  123. Sydserff, R., & Weetman, P. (1999). A texture index for evaluating accounting narratives: An alternative to readability formulae. Accounting, Auditing and Accountability Journal, 12(4), 459–488.Google Scholar
  124. Thomas, W. B., Herrmann, D. R., & Inoue, T. (2004). Earnings management through affiliated transactions. Journal of International Accounting Research, 3(2), 1–25.Google Scholar
  125. Trivun, V., Silajdzic, V., Mahmutcehajic, F., & Mrgud, M. (2012). Related party transactions and protection of minority shareholders. International Journal of Management Cases, 14(3), 15–22.Google Scholar
  126. Van Tendeloo, B., & Vanstraelen, A. (2008). Earnings management and audit quality in Europe: Evidence from the private client segment market. European Accounting Review, 17(3), 447–469.Google Scholar
  127. White, H. (1980). A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica, 48, 817–838.Google Scholar
  128. Wilkins, T., & Zimmer, I. (1983). The effect of leasing and different methods of accounting for leases on credit evaluations. Accounting Review, 58(4), 749–764.Google Scholar
  129. Williamson, O. (1975). Markets and hierarchies: Analysis and antitrust implications: A study in the economics of internal organization. The Free Press.Google Scholar
  130. Yeh, Y. H., Shu, P. G., & Su, Y. H. (2012). Related-party transactions and corporate governance: The evidence from the Taiwan stock market. Pacific-Basin Finance Journal, 20, 755–776.Google Scholar
  131. Zhang, Y. (2005). Revenue recognition timing and attributes of reported revenue: The case of software industry’s implementation of SOP 91-1. Journal of Accounting and Economics, 39(3), 535–561.Google Scholar
  132. Zhou, J., & Lobo, G. J. (2001). Disclosure quality and earnings management. Asia-Pacific Journal of Accounting and Economics, 8(1), 1–20.Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.University of ParmaParmaItaly
  2. 2.Free University of Bozen-BolzanoBolzanoItaly

Personalised recommendations