Soonwook  Hong, 
    Earnings Management by Debt Financing Types,
    International Business Management,
    Volume 11,Issue 3,
    2017,
    Pages 714-720,
    ISSN 1993-5250,
    ibm.2017.714.720,
    (https://makhillpublications.co/view-article.php?doi=ibm.2017.714.720)
    Abstract: The purpose of this study is to verify whether firms manage earnings using discretionary accruals
differently before financing in accordance with the choice of financing between bank loans and corporate
bonds. Samples of this study are the firms listed in the Korea Exchange between 1993 and 2014. Discretionary
accruals as proxy of earnings management are measured using Modified Jones Model and Performance
Matched Model. The analysis compared the balances of corporate bonds and bank loans along with
comparative analysis of changes in amount of bonds and loans. The results of all analysis show that the firms
that use a lot of bonds adjust earnings upwardly significantly more than the firms that use bank loans before
financing.
    Keywords: Earnings management;discretionary accruals;debt financing;corporate bonds;bank loans