TY  - JOUR
T1  - Earnings Management by Debt Financing Types
AU - Hong, Soonwook 
JO  - International Business Management
VL  - 11
IS  - 3
SP  - 714
EP  - 720
PY  - 2017
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2017.714.720
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2017.714.720
KW  - Earnings management
KW  -discretionary accruals
KW  -debt financing
KW  -corporate bonds
KW  -bank loans
AB  - 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.
ER  -