英語翻譯
This is an empirical question that has two opposing predictions.On the one hand,
we expect an affirmative answer because,as we argued in the previous section,
accrual-based related sales management,when compared with cash-based related
sales management,sends a stronger alarm to auditors because of the potential risks of
bad debt exposure.This substitution effect between cash-based related sales and
accrual-based related sales may actually extend to other accruals management items.
This is consistent with the finding in Graham et al.(2005) that to avoid scrutiny,
managers choose real earnings management that burns up real cash flows over
accrual earnings management that draws the attention of the auditors.The managers’
preferences for the mix between taking accounting versus real actions to manage
earnings are a function of the costs of the real actions and the level of regulators’ and
auditors’ enforcement against accrual management.Thus,to the extent that the
subsequent cash transfer is not excessive and does not attract auditors’ scrutiny as
much as accruals management,cash-based related sales can substitute not only
accrued related sales management but also total accruals management.