Corpus ID: 11968153

Product Market Competition and Financial Accounting Misreporting

@inproceedings{Balakrishnan2011ProductMC,
  title={Product Market Competition and Financial Accounting Misreporting},
  author={Karthik Balakrishnan and Daniel A. Cohen},
  year={2011}
}
  • Karthik Balakrishnan, Daniel A. Cohen
  • Published 2011
  • Business
  • We show that, on average, the level of product market competition acts as a disciplining force constraining managers from misreporting accounting information. Further, in a quasi-natural experiment that uses shifts in import tariffs to identify exogenous intensification of competition, difference-in-difference estimations support the causal nature of the disciplining effect of competition on misreporting. Moreover, we find that the relation is stronger in industries with higher levels of… CONTINUE READING

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