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Cited by 412

The DOI matches its Crossref record; 48 of the 48 references it cites were found in a registry or an index.

Does the Use of Financial Derivatives Affect Earnings Management Decisions?

Open access
Barton, Jan·2001·The Accounting Review
DOI 10.2308/accr.2001.76.1.1
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Abstract

I present evidence consistent with managers using derivatives and discretionary accruals as partial substitutes for smoothing earnings. Using 1994–1996 data for a sample of Fortune 500 firms, I estimate a set of simultaneous equations that captures managers' incentives to maintain a desired level of earnings volatility through hedging and accrual management. These incentives include increasing managerial compensation and wealth, reducing corporate income taxes and debt financing costs, avoiding underinvestment and earnings surprises, and mitigating volatility caused by low diversification. After controlling for such incentives, I find a significant negative association between derivatives' notional amounts and proxies for the magnitude of discretionary accruals.

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Metadata

Authors
Barton, J.
Venue
The Accounting Review
Publisher
American Accounting Association
Published
2001-01-01
Volume
76
Issue
1
Pages
1-26
ISSN
  • 0001-4826 (ISSN-L)
  • 1558-7967
DOI
10.2308/accr.2001.76.1.1
OpenAlex
W3125467606
Cited by
412
References
48
FWCI
39.85
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Does the Use of Financial Derivatives Affect Earnings Management Decisions? https://app.cochat.ai/papers/10.2308/accr.2001.76.1.1
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Barton, J. (2001). Does the Use of Financial Derivatives Affect Earnings Management Decisions? The Accounting Review. https://doi.org/10.2308/accr.2001.76.1.1

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.