Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 24, 2023 erstellt
Description:
We examine the effect of product market competition on firms' earnings management practices. Using exogenous variation in import competition, we find that heightened competition reduces both accrual-based and real earnings management. We also show that several measures of competition from past studies are flawed and produce misleading results. Our findings suggest that competition, akin to corporate governance, curbs managers' tendencies to manipulate reported performance