Do Fictitiously High Asset Growth Rates Drive the Asset Growth Anomaly? ()
ABSTRACT
Purpose: This paper investigates
whether the well-documented asset growth anomaly can be related to information
uncertainty due to earnings management. Design/Methodology/Approach: We
perform both portfolio-based and regression-based analyses. We employ the 5 Variable Version
of the Beneish model (Beneish, 1999) as an earnings management proxy and Piotroski’s (2000) FSCORE as
a proxy for firms’ fundamental strength. Findings: Overall, our evidence suggests that the asset
growth anomaly can be driven by high asset growth firms, manipulating their
accounting figures. Originality: Given the
implicit inferences that attribute the phenomenon to earnings management mainly by employing country-level proxies, we provide new
insights by employing variables measured at the firm level.
Share and Cite:
Artikis, P. , Asopoulos, G. , Sfakianakis, E. and Diamantopoulou, L. (2023) Do Fictitiously High Asset Growth Rates Drive the Asset Growth Anomaly?.
Theoretical Economics Letters,
13, 627-649. doi:
10.4236/tel.2023.133038.
Cited by
No relevant information.