Managers’ rank & file employee coordination costs and real activities manipulation

• Published in: Accounting, organizations and society Vol. 107; p. 101426
• Main Authors: Godsell, David, Huang, Kelly, Lao, Brent
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.05.2023
• Subjects: Coordination costs; Earnings management; Rank & file employees; Real activities; Earnings management; Coordination costs; Real activities; Rank & file employees

We investigate the effect of managers' rank & file employee coordination costs on real activities manipulation (RAM). We identify exogenous variation in managers' rank & file employee coordination costs using the adoption of 99 wrongful dismissal laws across 47 U.S. states between...