Earnings Management Under SFAS No. 115: Evidence From the Insurance Industry

Authors

Charles E. Jordan, University of Southern MississippiFollow
Stanley J. Clark, University of Southern MississippiFollow
W. Robert Smith, University of Southern Mississippi

Document Type

Article

Publication Date

1-1-1998

School

Accountancy

Abstract

Critics of SFAS No. 115 argue that allowing unrealized holding gains and losses on available for sale securities to bypass income and flow directly to owners equity creates opportunities for gains trading and earnings management. That is, to achieve a desired earnings level, management may selectively sell securities with the realized gains and losses affecting income. This study provides empirical evidence that earnings management under SFAS No. 115 is occurring in the insurance industry.

Publication Title

Journal of Applied Business Research

Volume

14

Issue

1

First Page

49

Last Page

56

Recommended Citation

Jordan, C. E., Clark, S. J., Smith, W. (1998). Earnings Management Under SFAS No. 115: Evidence From the Insurance Industry. Journal of Applied Business Research, 14(1), 49-56.
Available at: https://aquila.usm.edu/fac_pubs/21315