Li, Wei2010-07-162007https://hdl.handle.net/10182/2261This study provides evidence that New Zealand companies' managers manage reported earnings to avoid losses and decreases in earnings. Discontinuities in the distribution of reported earnings around zero may indicate earnings management. In a pooled, cross-sectional distribution of earnings and changes in earnings, evidence shows unusually low frequencies of small losses and small decreases in earnings and significantly high frequencies of small positive income and small increase in earnings. The exploratory test of distribution of cash flow from operations and changes in cash flow from operations shows that there is no obvious discontinuity around zero. The results of additional analysis indicate that firms in the 'just meet or beat benchmark' group are relatively larger than the firms within the 'just miss' group. In addition, companies in the 'just meet or beat benchmark' group have much more debts (both long term debt and short term debt) than those in the 'just miss' group.1-74enearnings managementearnings benchmarksdistribution of reported earningsearnings decreaseslossesfinancial statementsfinancial reportingThesisDigital thesis can be viewed by current staff and students of Lincoln University only. If you are the author of this item, please contact us if you wish to discuss making the full text publicly available.Q112870444