Earnings Smoothing and Stock Price Crash Risk

2014 ◽  
Author(s):  
Li Yao ◽  
Changling Chen
Keyword(s):  
Stock Price ◽  
Crash Risk ◽  
Earnings Smoothing

scholarly journals Earnings Smoothing and Bankruptcy Risk in Liquidating Private Firms

2018 ◽  
Vol 10 (1) ◽  
pp. 162
Author(s):  
Nor Afifah Shabani ◽  
Saudah Sofian
Keyword(s):  
Interest Rates ◽  
Stock Price ◽  
Crash Risk ◽  
Private Firms ◽  
Loan Default ◽  
Bankruptcy Risk ◽  
Public Firms ◽  
Earnings Smoothing ◽  
Distressed Firms ◽  
Default Risks

Smooth earnings are preferred by managers and creditors because they represent a stable business operations as well as low loan default risks and thus creditors reward firms which have smooth earnings with better loan covenant terms and lower interest rates. Nonetheless, recent literature shows that earnings smoothing in public firms is associated with stock price crash risk. Using Altman Z” score to measure firm’s specific bankruptcy risk, this study examines the association between accrual earnings smoothing and bankruptcy risk in liquidating private firms in UK and finds that earnings smoothing significantly negatively affects those firms' bankruptcy risk. The finding implies that financially distressed firms engage with less earnings smoothing, possibly because they do not have the opportunity to engage in accrual earnings smoothing anymore. Nonetheless, further examination shows that these firms engage less with earnings smoothing because they are being monitored by external creditors, indicated by significantly high leverage during the last period before they are being liquidated.

Is Real Earnings Smoothing Harmful? Evidence from Firm-Specific Stock Price Crash Risk

2017 ◽  
Vol 35 (1) ◽  
pp. 558-587 ◽  
Author(s):  
Inder K. Khurana ◽  
Raynolde Pereira ◽  
Eliza Xia Zhang
Keyword(s):  
Stock Price ◽  
Crash Risk ◽  
Earnings Smoothing

Earnings smoothing: Does it exacerbate or constrain stock price crash risk?

2017 ◽  
Vol 42 ◽  
pp. 36-54 ◽  
Author(s):  
Changling Chen ◽  
Jeong-Bon Kim ◽  
Li Yao
Keyword(s):  
Stock Price ◽  
Crash Risk ◽  
Earnings Smoothing

Family Firms and Stock Price Crash Risk

2019 ◽  
Vol 10 (4) ◽  
pp. 77-86
Author(s):  
Hae-Young Ryu ◽  
Soo-Joon Chae
Keyword(s):  
Stock Price ◽  
Family Firms ◽  
Crash Risk

Study on the Relation between Dividend and Stock Price Crash Risk

2018 ◽  
Vol 36 (4) ◽  
pp. 53-86
Author(s):  
Taejin Jung ◽  
Sang-Giun Yim
Keyword(s):  
Stock Price ◽  
Crash Risk

CEO Early-Life Disaster Experience and Stock Price Crash Risk

2019 ◽  
Author(s):  
Yangyang Chen ◽  
Qingliang Fan ◽  
Xin Yang ◽  
Leon Zolotoy
Keyword(s):  
Early Life ◽  
Stock Price ◽  
Crash Risk ◽  
Disaster Experience
Sign in / Sign up

Export Citation Format

Share Document