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The Timing of Asset Sales: Evidence of Earnings Management?
Author(s) -
Poitras Geoffrey,
Wilkins Trevor,
Kwan Yoke Shang
Publication year - 2002
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/1468-5957.00455
Subject(s) - earnings , asset (computer security) , empirical evidence , business , earnings management , sample (material) , net asset value , empirical research , monetary economics , accounting , economics , financial economics , finance , computer security , computer science , philosophy , chemistry , epistemology , chromatography
This paper presents empirical evidence from a sample of publicly traded Singaporean firms on the question: to what extent do firms manage earnings through the timing of asset sales? Previous studies have focused on accounting motives behind asset sales, ignoring the need to also consider economic motives. Some empirical evidence is provided to support the hypothesis that managers of firms with decreasing net earnings–per–share smooth earnings upwards using asset sales.