Revenue Recognition, Earnings Management, and Earnings Informativeness in the Semiconductor Industry

2012 ◽  
Vol 27 (1) ◽  
pp. 91-112 ◽  
Author(s):  
Stephanie J. Rasmussen
Keyword(s):  
Earnings Management ◽  
Semiconductor Industry ◽  
Distribution Channel ◽  
Life Cycles ◽  
Data Availability ◽  
Revenue Recognition ◽  
Product Life ◽  
Product Life Cycles ◽  
Product Return ◽  
Jel Classifications

SYNOPSIS Manufacturers that sell products to distributors experience product return and pricing adjustment uncertainties until the products are resold to end-customers. Such manufacturers recognize revenue when products are delivered to distributors (sell-in), when distributors resell products (sell-through), or under some combination of these methods (sell-in for some distributor sales and sell-through for others). This study examines the implications of these revenue recognition methods for a sample of semiconductor firms during 2001–2008. Semiconductor firms face rapid product obsolescence, declining prices over product life cycles, and unexpected industry downturns, which naturally lead to product return and pricing adjustment uncertainties. I find that sell-through and combination firms are less likely to manage earnings compared to sell-in firms. I also find that earnings are more informative for sell-through firms compared to both sell-in and combination firms. These findings suggest that manufacturers that sell products through the distribution channel should defer revenue recognition until product return and pricing adjustment uncertainties are resolved. JEL Classifications: M41 Data Availability: Data are available from the sources identified in the text.

Control of Uncertainties in Metal Forming by Applications of Higher Flexibility Dimensions

2011 ◽  
Vol 104 ◽  
pp. 83-93 ◽  
Author(s):  
Peter Groche ◽  
M. Kraft ◽  
S. Schmitt ◽  
S. Calmano ◽  
U. Lorenz ◽  
...  
Keyword(s):  
Metal Forming ◽  
Life Cycles ◽  
Flexible Forming ◽  
Product Life ◽  
Product Life Cycles ◽  
Servo Press ◽  
Recent Developments

It is widely accepted that fluctuations in market demands and product life cycles are often unpredictable. Based on these uncertainties, companies cannot calculate with constant demands. Manufacturers are also confronted with quality fluctuations in semi-finished parts that lead to various product qualities. This paper identifies the most relevant uncertainties for companies and gives answers how manufacturers can deal with these problems. It also shows recent developments in the field of flexible forming using servo press technology. Hereby the focus is set on 3D Servo Presses, providing various options for accomplishing uncertainties.

Gestensteuerung als intuitives Bedienkonzept/Gesture control as an intuitive way of planning - Increasing the communication between shopfloor and planning

2015 ◽  
Vol 105 (03) ◽  
pp. 119-122
Author(s):  
A.-C. Fleischmann ◽  
P. Brosch ◽  
P. Brunkow ◽  
F. Jelich
Keyword(s):  
Life Cycles ◽  
Planning Systems ◽  
Product Life ◽  
Product Life Cycles ◽  
Gesture Control ◽  
Zukünftige Entwicklungen ◽  
Planning Department ◽  
Barriers To Communication

In Zeiten der Globalisierung sowie kürzer werdender Produktlebenszyklen mit zunehmender Dynamik sehen sich Automobilhersteller immer mehr dem Druck ausgesetzt, schnelle Anpassungen und Änderungen in sämtlichen Planungsphasen umzusetzen [1]. Infolgedessen entstehen hochkomplexe, teilweise unübersichtliche Planungssysteme, die lediglich von Experten bedienbar sind. Das erschwert eine Zusammenarbeit zwischen Planung und Mitarbeitern des Shopfloor; Änderungen nach dem Produktionsstart (SOP) werden nur in seltenen Fällen an die Planung zurückgespielt. Der Fachbeitrag beschreibt ein intuitives Bedienkonzept, um bei dieser Kommunikationshemmschwelle Abhilfe zu schaffen. Dabei wurde insbesondere der Einsatz von Consumertechnik im industriellen Umfeld überprüft. Potentiale für zukünftige Entwicklungen werden aufgezeigt.   In the wake of globalization and shorter product life cycles, automobile companies are forced to adapt more quickly to challenges and to allow changes in early planning phases. To cope with these requirements, the manufacturers introduced highly complex and partially confusing planning systems, which can only be operated by experienced experts, thus making communication between shopfloor and planning more difficult. Changes occurring after start of production (SOP) are only returned to the planning department to some extent. To overcome existing barriers to communication, intuitive operating options, mainly from consumer technology, shall be examined.

Beyond Product Life Cycles

2019 ◽  
pp. 123-143
Author(s):  
Gabriel García-Acosta ◽  
Karen Lange-Morales
Keyword(s):  
Life Cycles ◽  
Product Life ◽  
Product Life Cycles

Clawbacks and Earnings Management

2018 ◽  
Vol 31 (3) ◽  
pp. 129-151 ◽  
Author(s):  
Carolyn B. Levine ◽  
Michael J. Smith
Keyword(s):  
Numerical Analysis ◽  
Earnings Management ◽  
Cash Flows ◽  
Data Availability ◽  
Real Earnings Management ◽  
Interim Report ◽  
Short Term ◽  
Period Model ◽  
Jel Classifications

ABSTRACT This study addresses the effect of clawbacks on earnings management (EM). In a two-period model, the manager can report truthfully or distort an interim report using either accrual or real EM. The principal can make short-term payments based on a manipulable accounting signal and long-term payments based on unmanipulable cash flows. The strength of the clawbacks determines the likelihood that the manager's compensation is reclaimed when the interim report was managed. Stronger clawback provisions may result in (1) a substitution between accrual and real earnings management, or (2) earnings management when no earnings management was optimal with weak clawbacks, and (3) lower expected profits for the principal. Numerical analysis suggests that strong clawbacks do not reduce aggregate earnings management. JEL Classifications: J33; M48; M52; G38. Data Availability: All data are simulated.

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