The market reaction to unexpected earnings via discretionary accruals and sustainability reporting

Izadi. Z. D, Javad ORCID: https://orcid.org/0000-0001-5607-5077 and Palazzo, Maria (2020) The market reaction to unexpected earnings via discretionary accruals and sustainability reporting. In: Contemporary Issues in Sustainable Branding: Ethical, Social, and Environmental Perspectives. Routledge, Taylor and Francis Group Publishing Limited. (In Press)

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Abstract

We investigate the impact of earnings management on the sustainability reporting and branding position among the listed companies in the UK. We pay particular attention to the roles of discretionary accruals and find that they are negatively related to future stock returns.

Key points
This study builds on this prior work regarding the contribution of accruals to explaining future returns
To understand the association between returns and earnings in accounting.
Attempts to investigate the relationship by linking earnings management in annual financial and sustainability reporting
A considerable body of research is concerned with the relation between accounting stock returns and earnings.
To find positive or negative earnings management can create positive or negative returns.
Managers may try to manage their earnings by using discretionary accruals.
To show the ability of accruals for both actual and simulated earnings management.

Item Type: Book Section
Additional Information: This is an Accepted Manuscript of a book chapter due to be published by Routledge/CRC Press in Contemporary Issues in Sustainable Branding: Ethical, Social, and Environmental Perspectives.
Subjects: Business and finance > Accounting and finance > Market based accounting research
Depositing User: Javad Izadi Zadeh Darjezi
Date Deposited: 14 Jul 2020 09:08
Last Modified: 16 Jul 2020 12:01
URI: http://repository.uwl.ac.uk/id/eprint/7094

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