The Allowance for Uncollectible Accounts, Conservatism, and Earnings Management
通过分析坏账准备及其对应的坏账费用，研究会计稳健性与盈余管理之间的相互影响，发现稳健性可能加剧企业为达到分析师预测而向下管理坏账费用的行为。
ABSTRACT We study the interrelation between conservatism and earnings management by examining the allowance for uncollectible accounts and its income statement counterpart, bad debt expense. We find that the allowance is conservative and that it has become more conservative over time. Conservatism may, however, facilitate earnings management. We find that firms manage bad debt expense downward (and even record income‐increasing bad debt expense) to meet or beat analysts’ earnings forecasts and that conservatism accentuates the extent to which firms manage bad debt expense. Further, we find that firms manage bad debt expense downward by drawing down previously recorded over‐accruals of bad debt expense that have accumulated on the balance sheet. An implication of our study is that tighter limits on the amount by which firms are permitted to understate net assets may reduce their ability to manage earnings.