{"product_id":"earnings-management-and-environmental-remediation-costs-von-mohamed-elbannan","title":"EARNINGS MANAGEMENT AND ENVIRONMENTAL REMEDIATION COSTS","description":"\u003cp\u003eThis study investigates whether polluting firms  manage earnings in the year a material environmental  remediation expense (ERE) is recognized (the event  year) and whether the market reacts to the ERE  recognition (measured through the effect on the  earnings response coefficients of polluters). Using  a  sample of 118 firms designated as potentially  responsible parties by the EPA, I estimate the  discretionary accruals around the event year using  the performance-matched modified Jones model.  Overall, results suggest that polluters take income- decreasing accruals in year -1, income-increasing  accruals in year 0 (the event year), and income- increasing accruals in year +1; the practice of  earnings management is uniform across firms  regardless of the level of materiality of the ERE;  the informativeness of earnings for polluters  declines after they release earnings containing a  material ERE and that it is lower than that of non- polluters; and polluters spend in general more on  environmental non-remediation expenses in the event  year.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783838306681\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783838306681","offer_id":39497056780381,"sku":"9783838306681","price":59.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/49d66f11-2046-4cf8-bef8-28c0e9de6d8a.jpg?v=1758779576","url":"https:\/\/shop.autorenwelt.de\/products\/earnings-management-and-environmental-remediation-costs-von-mohamed-elbannan","provider":"Autorenwelt Shop","version":"1.0","type":"link"}