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    A new paper in JIS - Reporting Frequency and Presentation...
    blog entry posted February 16, 2016 by Roger S Debreceny, last edited February 26, 2016, tagged research 
    A new paper in JIS - Reporting Frequency and Presentation Format
    intro text:

    This blog provides background on a new paper in JIS Reporting Frequency and Presentation Format. doi: http://dx.doi.org/10.2308/isys-51284


    A recent accepted paper in JIS is Reporting Frequency and Presentation Format: Detecting Real Activities Manipulation by Fengchun Tang, Christopher Kevin Eller and Benson Wier. The paper will be forthcoming in an issue of JIS.

    Benson Wier has provided this overview of the paper: 

    Managers increasingly rely on real activities manipulation (RAM) to manage earnings. Compared to accrual-based earnings management, RAM is more difficult to detect and thus poses particular challenges to financial information users. RAM can also be quite harmful to a company’s financial condition, as RAM often involves aiming for short-term earnings targets at the detriment of long-term firm value. This study investigates whether providing users with more frequent financial information improves their ability to detect sales-related RAM. We also investigate whether such effect is moderated by presentation format. We conducted an experiment with 77 financial analysts, manipulating information frequency (weekly versus quarterly financial reporting) and presentation format (tabular representation only versus tabular representation with graphical support). Results indicate that the combination of more frequent financial reporting and graphical support assists financial analysts in detecting RAM. Specifically, when financial information was presented in table format only, the likelihood of sales-related RAM reported by the participants does not differ between the more and less frequent reporting conditions. In contrast, when financial information was presented in tabular format with graphical support, participants in the more frequent reporting (weekly reporting) condition reported a significantly higher likelihood of sales-related RAM than participants in the less frequent reporting (quarterly reporting) condition. Overall, results suggest that more frequent reporting can improve RAM detection when users are aided with graphical support.