Factors Associated with the Year-End Decline in Working Capital

References

• Baber W, Fairfield P, Haggard J (1991) The effect of concern about reported income on discretionary spending decision: The case of research and development. Accounting Rev. 66:818–829.Google Scholar
• Bamoul W (1952) The transaction demand for cash: An inventory theoretic approach. Quart. J. Econom. 66:545–556.Crossref, Google Scholar
• Banker RD, Datar S (1989) Sensitivity, precision, and linear aggregation of signals for performance evaluation. J. Accounting Res. 27:21–39.Crossref, Google Scholar
• Banker RD, Huang R, Natarajan R (2009) Incentive contracting and value relevance of earnings and cash flows. J. Accounting Res. 47:647–678.Crossref, Google Scholar
• Brown LD, Caylor ML (2005) A temporal analysis of quarterly earnings thresholds: Propensities and valuation consequences. Accounting Rev. 80:423–440.Crossref, Google Scholar
• Brown LD, Pinnelo AS (2007) To what extent does the financial reporting process curb earnings surprise games? J. Accounting Res. 45:947–981.Crossref, Google Scholar
• Bushee B (1998) The influence of institutional investors on myopic R&D investment behavior. Accounting Rev. 73:305–333.Crossref, Google Scholar
• Cohen DA, Zarowin P (2010) Accrual-based and real earnings management activities around seasoned equity offerings. J. Accounting Econom. 50:2–19.Crossref, Google Scholar
• Cohen DA, Dey A, Lys T (2008) Real and accrual-based earnings management in the pre- and post-Sarbanes-Oxley periods. Accounting Rev. 82:757–787.Crossref, Google Scholar
• Collins DW, McInnis J (2011) The effect of cash flow forecasts on accruals quality and benchmark beating. J. Accounting Econom. 51:219–239.Crossref, Google Scholar
• Copeland T, Koller T, Murrin J (1994) Valuation: Measuring and Managing the Value of Companies (John Wiley & Sons, New York).Google Scholar
• Das S, Shroff P, Zhang H (2009) Quarterly earnings patterns and earnings management. Contemporary Accounting Res. 26:797–831.Crossref, Google Scholar
• De Angelis D, Grinstein Y (2015) Performance terms in CEO compensation contracts. Rev. Finance 19:619–651.Crossref, Google Scholar
• DeFond M, Hung M (2003) An empirical analysis of analysts’ cash flow forecasts. J. Accounting Econom. 35:73–100.Crossref, Google Scholar
• DeFond M, Jiambalvo J (1994) Debt covenant violation and manipulation of accruals. J. Accounting Econom. 17:145–176.Crossref, Google Scholar
• Fan Y, Barua A, Cready WM, Thomas W (2010) Managing earnings using classification shifting: Evidence from quarterly special items. Accounting Rev. 85:1303–1323.Crossref, Google Scholar
• Fazzari S, Hubbard RG, Petersen B (2000) Investment-cash flow sensitivities are useful: A comment on Kaplan and Zingales. Quart. J. Econom. 115:695–705.Crossref, Google Scholar
• FD Wire (2004) Q4 2003 Raytheon earnings conference call—Final. January 27, 2004. Available from Factiva.Google Scholar
• Francis J, Hannah JD, Vincent L (1996) Causes and effects of discretionary asset write-downs. J. Accounting Res. 34:117–134.Crossref, Google Scholar
• Gaver JJ, Gaver KM, Austin JR (1995) Additional evidence on bonus plans and income management. J. Accounting Econom. 19:3–28.Crossref, Google Scholar
• Givoly D, Ronen J (1981) “Smoothing” manifestations in fourth quarter results of operations: Some empirical evidence. Abacus 17:174–193.Crossref, Google Scholar
• Givoly D, Hayn C, Lehavy R (2009) The quality of analysts cash flow forecasts. Accounting Rev. 84:1877–1913.Crossref, Google Scholar
• Gordon EA, Henry E, Jorgensen B, Linthicum C (2013) Flexibility in cash flow classification under IFRS: Determinants and consequences. Working paper, Temple University, Philadelphia.Google Scholar
• Graham JR, Harvey CR, Rajgopal S (2005) The economic implications of corporate financial reporting. J. Accounting Econom. 40:3–73.Crossref, Google Scholar
• Green D (1964) Towards a theory of interim reports. J. Accounting Res. 2:35–49.Crossref, Google Scholar
• Guidry F, Leone AJ, Rock S (1999) Earnings-based bonus plans and earnings management by business-unit managers. J. Accounting Econom. 26:113–142.Crossref, Google Scholar
• Healy P (1985) The effect of bonus schemes on accounting decisions. J. Accounting Econom. 7:85–107.Crossref, Google Scholar
• Heckman JJ, Ichimura H, Todd PE (1997) Matching as an econometric evaluation estimator: Evidence from evaluating a job training programme. Rev. Econom. Stud. 64(4):605–654.Crossref, Google Scholar
• Holmstrom B (1979) Moral hazard and observability. Bell J. Econom. 10:74–91.Crossref, Google Scholar
• Holthausen R (1990) Accounting method choice: Opportunistic behavior, efficient contracting, and information perspectives. J. Accounting Econom. 12:207–218.Crossref, Google Scholar
• Holthausen R, Larcker DF, Sloan R (1995) Annual bonus schemes and the manipulation of earnings. J. Accounting Econom. 19:29–74.Crossref, Google Scholar
• Huang R, Marquardt C, Zhang B (2014) Why do managers avoid EPS dilution? Rev. Accounting Stud. 19:877–912.Crossref, Google Scholar
• Ittner C, Larcker D, Meyer M (2003) Subjectivity and the weighting of performance measures: Evidence from a balanced scorecard. Accounting Rev. 78:725–758.Crossref, Google Scholar
• Jacob J, Jorgensen B (2007) Earnings management and accounting income aggregation. J. Accounting Econom. 44:399–419.Crossref, Google Scholar
• Jones J (1991) Earnings management during import relief investigations. J. Accounting Res. 29:193–228.Crossref, Google Scholar
• Keim DB (1983) Size-related anomalies and stock return seasonality. J. Financial Econom. 12:13–32.Crossref, Google Scholar
• Kieschnick R, Laplante M, Moussawi R (2013) Working capital management and shareholders’ wealth. Rev. Finance 17:1–26.Crossref, Google Scholar
• Lambert R (2001) Contracting theory and accounting. J. Accounting Econom. 32:3–87.Crossref, Google Scholar
• Larcker DF, Richardson SA, Tuna I (2007) Corporate governance, accounting outcomes, and organizational performance. Accounting Rev. 82:963–1008.Crossref, Google Scholar
• Lee LF (2012) Incentives to inflate reported cash from operations using classification and timing. Accounting Rev. 87:1–33.Crossref, Google Scholar
• Lemayian Z (2013) Corporate bond repurchases and earnings management. Working paper, Massachusetts Institute of Technology, Cambridge.Google Scholar
• Levy H, Shalev R (2016) Bond repurchase objectives and the repurchase method choice. Working paper, Baruch College, New York.Google Scholar
• McNichols M, Wilson GP (1988). Evidence of earnings management from the provision of bad debts. J. Accounting Res. 26:1–31.Crossref, Google Scholar
• Mohanram P (2014) Analysts’ cash flow forecasts and the decline of accruals anomaly. Contemporary Accounting Res. 31:1143–1170.Crossref, Google Scholar
• Murphy KJ (2000) Performance standards in incentive contracts. J. Accounting Econom. 30:245–278.Crossref, Google Scholar
• Palepu K, Healy P (2008) Business Analysis and Valuation Using Financial Statements, 4th ed. (Thomson South-Western, Mason, OH).Google Scholar
• Penman S (2010) Financial Statement Analysis and Security Valuation, 4th ed. (McGraw-Hill Irwin, New York).Google Scholar
• Perry T, Zenner M (2001) Pay for performance? Government regulation and structure of compensation contracts. J. Financial Econom. 62:453–488.Crossref, Google Scholar
• Pulliam S (2004) Rising inventories worry tech investors again. Wall Street Journal (March 29) C1, C4.Google Scholar
• Roychowdhury S (2006) Earnings management through real manipulation. J. Accounting Econom. 42:335–370.Crossref, Google Scholar
• Shalev R, Zhang IX, Zhang Y (2013) CEO compensation and fair value accounting: Evidence from purchase price allocation. J. Accounting Res. 51:819–854.Crossref, Google Scholar
• Shin H, Soenen L (1998) Efficiency of working capital management and corporate profitability. Financial Practice Ed. 8:37–45.Google Scholar
• Sloan R (1996) Do stock prices fully reflect information in accruals and cash flows about future earnings? Accounting Rev. 71:289–315.Google Scholar
• White G, Sondhi A, Fried D (2003) The Analysis and Use of Financial Statements, 3rd ed. (John Wiley & Sons, Hoboken, NJ).Google Scholar