Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes-Oxley Periods

We document that accrual-based earnings management increased steadily from 1987 until the passage of the Sarbanes-Oxley Act (SOX) in 2002, followed by a significant decline after the passage of SOX. Conversely, the level of real earnings management activities declined prior to SOX and increased sign... View More