Premium Essay

Mr Zheng

In:

Submitted By jij00015
Words 10135
Pages 41
Accounting Horizons
Vol. 27, No. 2
2013
pp. 301–318

American Accounting Association
DOI: 10.2308/acch-50434

Capital Structure, Earnings Management, and Sarbanes-Oxley: Evidence from
Canadian and U.S. Firms
Kelly E. Carter
SYNOPSIS: I examine Sarbanes-Oxley’s (SOX) effect on capital structure. I find that
SOX is associated with higher long-term debt ratios, as firms listed in the U.S. raise their long-term debt ratios by 2 to 3 percentage points. This finding is consistent with the idea that, although the reduction in information asymmetry associated with SOX could prompt managers to increase equity financing, debt is still safer and less costly than equity in the
SOX era. Further analysis shows that the increase in debt occurs in the two quarters prior to SOX, suggesting that firms anticipate a higher cost of debt after SOX and acquire debt while it is relatively cheap. Also, firms that heavily (lightly) manage earnings prior to
SOX use less (more) debt after SOX. This result is consistent with the view that firms that aggressively manage earnings before SOX reveal intrinsically weaker earnings after
SOX, casting doubt on those firms’ ability to repay debt and relegating those firms to issue equity for financing purposes.
Keywords: capital structure; earnings management; debt ratio; Sarbanes-Oxley.
JEL Classifications: G32; G38.
Data Availability: Data available upon request.

Kelly E. Carter is an Assistant Professor at Morgan State University.
I particularly thank Terry Shevlin (co-editor) and an anonymous referee for their detailed, excellent comments, which greatly improved this paper. I also thank Alexander Butler, Laura Field, Delroy Hunter, Ninon Kohers Sutton, Patrick J. Kelly, and
Jianping Qi for their valuable feedback. In addition, I thank Scott Besley, Matthew Billett, Jonathan Clarke, George Comer,
Shane Johnson, Norris

Similar Documents

Premium Essay

How Did Zheng He Celebrate His Achievements

...If Zheng He was the explorer with more achievements why do we not celebrate his accomplishments? Zheng He was the far more advanced explorer who with the help of all of his technological advances was able to explore new lands. Money was a huge contribution to how the fleets came to be so powerful and stand out from the rest. The rout he traveled on was the farthest and longest of all the other explorations of that time. That makes it very significant and unlike other traditional explorations. How advanced China was for it is time made sea travel easier for explorers. The Chinese has the compass, the map, and the astrolabe to help find their way and know what direction they where heading in. All of these are essential sea traveling tools and you could not choose one or the other or else you would get lost. China was also one of the largest working countries, which meant more workers and more production. All of China is extra manpower was why they were able to create so many fleets. It was also were a large portion of their crew on the ship came from....

Words: 486 - Pages: 2

Free Essay

Turn of the Screw

...home after the previous governess died. Douglas begins to read from the written record, and the story shifts to the governess’s point of view as she narrates her strange experience. The governess begins her story with her first day at Bly, the country home, where she meets Flora and a maid named Mrs. Grose. The governess is nervous but feels relieved by Flora’s beauty and charm. The next day she receives a letter from her employer, which contains a letter from Miles’s headmaster saying that Miles cannot return to school. The letter does not specify what Miles has done to deserve expulsion, and, alarmed, the governess questions Mrs. Grose about it. Mrs. Grose admits that Miles has on occasion been bad, but only in the ways boys ought to be. The governess is reassured as she drives to meet Miles. One evening, as the governess strolls around the grounds, she sees a strange man in a tower of the house and exchanges an intense stare with him. She says nothing to Mrs. Grose. Later, she catches the same man glaring into the dining-room window, and she rushes outside to investigate. The man is gone, and the governess looks into the window from outside. Her image in the window frightens Mrs. Grose, who has just walked into the room....

Words: 1066 - Pages: 5

Free Essay

The Star

...character? To what extent is her final protest justified? How do the other characters portray themselves by their attitudes toward the ritual? Mrs. Tess Hutchinson stands out right from the start: she arrives at the lottery late. She explains to Mr. Summers that she was doing her dishes and forgot what day it was. The town treats her lateness lightly, but several people comment on it, “in voices just loud enough to be heard across the crowd, ‘Here comes your Missus, Hutchinson,’ and ‘ Bill, she made it after all.’” (Jackson 501). It is ironic that she is the one who wins the lottery, and is fated to be stoned. So Tess Hutchinson has already been noticed by people as one who is not entirely part of the group. Before the drawing she is friendly with the other women, pretending to be pleased to be present. The very moment that she sees is her family that draws the black dot, though, her egotism is evident. “You didn’t give him time enough to take any paper he wanted. I saw you. It wasn’t fair!” (Jackson 504). She continues to scream about the unfairness of the ritual up until her stoning. Mrs. Hutchinson knew the lottery was wrong, but she never did anything about it. She pretends as much as she could to enjoy it, when she truly hated it all along. Maybe Jackson is suggesting that the more hypocritical one is, the more of a target they are. Mrs. Hutchinson was clearly the target of her fears. I think sometimes we have no problem remarking on people’s adultery until it is ourselves that...

Words: 548 - Pages: 3

Premium Essay

Search for Miss Ssg (Script)

...members and the spirited PTA Officers. J & M: ladies and gentlemen, good evening! Welcome to the search for MISS SSG 2011-2012 and the induction ceremony of Tugdan National High School. M: as we commence this momentous event, may I request everybody to rise for a soul warming doxology to be lead by selected students. J: please remain standing for the Philippine National Anthem to be conducted by Mrs. Rachel Fesalbon. M: the world is proud of having its great leaders. From ancient times up to present, good leaders foster the rest of the world to stand firm, to dream big and to take the highest flight man could ever take.. good leaders prepare people to survive the realities of life !ladies and gentlemen, let us hear from our loving Madam Melicia Galicia for her opening remarks. : and at this moment, may I call on Mr. Christian Solidum to introduce the board of judges for tonight’s affair. J: thank you sir! And now let us all welcome our candidates in their production number. J: now, we have the induction ceremony of the newly elected SSG Officers who will be presented by Mr. Randy A. Musa, SSG Adviser and to be inducted by Hon. Herman Galicia, ABC President.. may I request all the officers to come on stage. M: folks, let us be entertained as the selected students set on stage in their modern dance presentation. : thank you guys!! J: ladies and gentlemen, a big round of applause to the candidates in their fashionista...

Words: 790 - Pages: 4

Premium Essay

Why Did China Fall Behind Europe in the 15th Century?

...Why did China fall behind Europe in the 15th century? In my opinion, the main reason that China fell behind Europe in the 15th century is the closing down of itself with other civilizations and the banned international trades strategies which severed the communication and connection of the Chinese people with the outside world. And in the same time the rapid growth of the European countries had boosted those civilizations in the other direction thanks to the newly discovered resources on the other side of the Atlantic Ocean. I would like to explain these ideas from the following aspects: The early developments of China: China has gone through a period of rapid technological advances in the first centuries of human history thanks to its particular geographical location and the early coming together of the nations within its boundary. Although there were lots of nations fighting wars against each other, aiming to control all the territory on the land of the so-called East Asia nowadays, the Chinese empire was finally founded by the Qin and the united nation has adopted lots of governing strategies to develop the livelihood of its people not only in literature but also in science. Because of these factors, the Chinese people have invented ways to preserve the cultural and technological achievements and also have developed ways to explore the 1/7 outside world. Such decisions have been made since the Han dynasty when the empire opened up the Silk Road to the west, connecting...

Words: 1527 - Pages: 7

Free Essay

Zheng He

...Zheng He vs. Christopher Columbus When you hear the name Christopher Columbus the first thing that probably comes to your mind is that he was the one who founded America. However, if you actually do some research you will find out that he wasn’t the only one. Evidence shows that there was another man who discovered America seventy years before, Zheng He. He was a Chinese admiral during the Ming Dynasty, who also served as the Ming Dynasty Emperor and leader of seven voyages in the Indian Ocean. Christopher Columbus and Zheng He were both great travelers with great differences in their journey. Columbus’ story is one of great greed and domination while Zheng’s however one of a more noble cause. Very rarely, does the name Zheng He ever come up unless you’re in China. But he was a very important traveler in the world of discovery and he predates many of the more famous explorers. The purpose of his travel and explorations was to display the power of China while also creating better relations with other nations and setting up trade agreements in different parts of the world. One of the things that Zheng He’s voyages are known for is the size of the fleets that he commanded. In all, there were seven voyages headed up by Zheng He, including voyages to East Africa, India, and Arabia. Zheng He and his expedition exemplified the highest level of ancient Chinese propriety in terms of foreign trade. Zheng’s voyage stimulated and inspired the development of overseas trade....

Words: 767 - Pages: 4

Premium Essay

Zheng He Imperialism

...must be mentioned, and that man was Zheng He. He was a great Chinese commander for Emperor Yongle. Zheng He was sent on a series of seven voyages, sailing all over the Southeast Asia and the Indian Ocean world. He and his enormous fleet navigated to many different countries, and for this reason historians believe that the purpose of his voyages were exploration and that he was an explorer. Historians also debate whether or not Zheng He’s expeditions were imperialistic. However, Dreyer argues that Zheng He was not an explorer and the purpose of his voyages were not imperialistic. The main purpose of Zheng He’s voyages was to project the wealth and the power of...

Words: 1953 - Pages: 8

Premium Essay

How Did Zheng He's 7 Voyages

...Recently the inquiry, were Zheng He’s seven voyages historically plausible, has come into question. I firmly believe that his voyages were that his voyages were not possible. I believe this for multiple reasons. One reason is that the technology during the Golden Age was not as advanced at it should have been to create the ships. Also, there is not enough information or evidence to support the realization of these seven voyages. In the 1400s, the technology was simply not as strongly advanced, as it must have been in order to make at least one of the massive ships, let alone over 100! According to nationalgeographic.com, on the first voyage there were presumably 317 ships. In addition, the treasure ships had about 400-foot-long decks and nine masts connected to each one. In simple terms, there was not enough manpower to make the ships. In Nanjing, a capital of east China's Jiangsu Province, a replica of one a treasure ship was made. Even though “old school techniques” were used, according to China.org.cn, hammers, screwdrivers, power drills, and other modern day tools were used. They did not have these gears in the 1400s, so how could they have possibly made so many ships with the lack of the...

Words: 463 - Pages: 2

Free Essay

Mr Ahmed

...May I beg that you will write at once to the mother of this unfortunate woman--to Mrs. Catherick--to ask for her testimony in support of the explanation which I have just offered to you?" I saw Miss Halcombe change colour, and look a little uneasy. Sir Percival's suggestion, politely as it was expressed, appeared to her, as it appeared to me, to point very delicately at the hesitation which her manner had betrayed a moment or two since. I hope, Sir Percival, you don't do me the injustice to suppose that I distrust you," she said quickly. "Certainly not, Miss Halcombe. I make my proposal purely as an act of attention to YOU. Will you excuse my obstinacy if I still venture to press it?" He walked to the writing-table as he spoke, drew a chair to it, and opened the paper case. "Let me beg you to write the note," he said, "as a favour to ME. It need not occupy you more than a few minutes. You have only to ask Mrs. Catherick two questions. First, if her daughter was placed in the Asylum with her knowledge and approval. Secondly, if the share I took in the matter was such as to merit the expression of her gratitude towards myself? Mr. Gilmore's mind is at ease on this unpleasant subject, and your mind is at ease—pray set my mind at ease also by writing the note." "You oblige me to grant your request, Sir Percival, when I would much rather refuse it." With those words Miss Halcombe rose from her place and went to the writing-table. Sir Percival thanked her, handed her a...

Words: 572 - Pages: 3

Premium Essay

The Virgin

...He went to where Miss Mijares sat, a tall, big man, walking with an economy of movement, graceful and light, a man who knew his body and used it well. He sat in the low chair worn decrepit by countless other interviewers and laid all ten fingerprints carefully on the edge of her desk. She pushed a sheet towards him, rolling a pencil along with it. While he read the question and wrote down his answers, she glanced at her watch and saw that it was ten. "I shall be coming back quickly," she said, speaking distinctly in the dialect (you were never sure about these people on their first visit, if they could speak English, or even write at all, the poor were always proud and to use the dialect with them was an act of charity), "you will wait for me." As she walked to the cafeteria, Miss Mijares thought how she could easily have said, Please wait for me, or will you wait for me? But years of working for the placement section had dulled the edges of her instinct for courtesy. She spoke now peremtorily, with an abruptness she knew annoyed the people about her. When she talked with the jobless across her desk, asking them the damning questions that completed their humiliation, watching pale tongues run over dry lips, dirt crusted handkerchiefs flutter in trembling hands, she was filled with an impatience she could not understand. Sign here, she had said thousands of times, pushing the familiar form across, her finger held to a line, feeling the impatience grow at sight of the man...

Words: 2581 - Pages: 11

Free Essay

Ssadas

...Contact Information for Teaching Staff at Thomas Knyvett College If you email a member of staff please allow 48 hours for a response. If it is an urgent matter please contact a member of the SLT or your son/daughter’s House Leader. Senior Leadership Team Mrs Miss Mr Mr Mr Miss Mrs Mrs Mrs Miss Miss Mr Mrs Mrs Ms Mr Mrs Mrs Mrs Miss Miss Miss Miss Mrs Mr Miss Mrs Miss Miss Mr Ms Ms Mrs Mrs Miss Mrs Mrs Miss Mr Mrs Mr Mrs Mrs Miss Miss Miss Ms Miss Miss Miss Mrs Janise Farrah Andrew Sheldon Chris Freya Claire Valerie Inma Seema Allison Adam Sian Kapila Theresa David Aimi Correen Jackie Emma Tanya Joann Alison Rachel Nick Abigail Wendy Lauren Isobel Andy Megan Mazie Carolyn Priscilla Preetpal Gurinder Sian Emily Steven Christine David Susan Vanessa Hayley Jean Azmari Linda Laura Nicole Hayley Tanya Marillat Thantrey Ward Snashall Bellamy Oliver Parsons O’Keeffe Alvarez Balrai Bates Belbin Bolsh Chalisgaonkar Chambers Chapman Curtis Danks Dillaway Edge Ellis Epps Fairclough Foley Fowler Frith Grantham Jankowski John Knott Lister Lloyd-Smith Manwaring Naicker Nashad Oberai Reeve Razzell Ratsakatika Reilly Retsinas Rowntree Russell Sculpher Semadeni Shikder Strachan Thomas Vernon Warren Zaheer JMa FTh AWa SSn CBe FOL CPa VOk IAL SBa ABa ABe SBo KCh TCh DCh ACs CDa JDi EEd TEl JEp AFa RFo NFo AFr WGr LJa IJo AKn MLi MSm CMa PNa PNd GOi SRv ERa DRa CRe SRe SRe VRu HSc JSe ASh LSt LTh NVe HWa TZa Head of School Deputy Head Assistant Head Assistant Head Cross Phase Assistant Head Partnership...

Words: 591 - Pages: 3

Premium Essay

Missed Appt

...Article 86 of the Uniform Code Of Military Justice. This Article covers Point and Place of Duty. That means from PT formation to COB that is where you will be. What a lot of Soldiers do not understand that includes appointments made by them or someone else. We have appointment times, SP times, formation times and many other start times that dictate we will be there. If a Convoy has an SP time of fifteen hundred hours and the Soldiers decide to show up late because they did not feel like getting ready on time people could die. If they rolled out on time, they may have avoided the ambush or avoided the Vbid that hit them in the bottleneck. It sounds extreme but time management plays a critical role in the Army. When you make an appointment that spot has been reserved for you. That means if you have been given the last slot someone else is going to have to wait for another one to open up. This could be one day or one month. And because you missed it someone else is still going to have to wait when they could have had that spot and been there. If you are going to miss the appointment or cannot make it due to mission they do allow us to cancel the appointment with in twenty four hours. The Army allows us to make appointments for whatever we need. Be it for a medical appointment, house goods, CIF, Smoking Sensation or whatever we need these recourses are available to us. But when Soldiers start missing appointments theses systems start to become inefficient. What a lot of Soldiers do...

Words: 354 - Pages: 2

Free Essay

The Virgin

...THE VIRGIN by Kerima Polotan Tuvera 1) He went to where Miss Mijares sat, a tall, big man, walking with an economy of movement, graceful and light, a man who knew his body and used it well. He sat in the low chair worn decrepit by countless other interviewers and laid all ten fingerprints carefully on the edge of her desk. She pushed a sheet towards him, rolling a pencil along with it. While he read the question and wrote down his answers, she glanced at her watch and saw that it was ten. "I shall be coming back quickly," she said, speaking distinctly in the dialect (you were never sure about these people on their first visit, if they could speak English, or even write at all, the poor were always proud and to use the dialect with them was an act of charity), "you will wait for me." As she walked to the cafeteria, Miss Mijares thought how she could easily have said, Please wait for me, or will you wait for me? But years of working for the placement section had dulled the edges of her instinct for courtesy. She spoke now peremtorily, with an abruptness she knew annoyed the people about her. When she talked with the jobless across her desk, asking them the damning questions that completed their humiliation, watching pale tongues run over dry lips, dirt crusted handkerchiefs flutter in trembling hands, she was filled with an impatience she could not understand. Sign here, she had said thousands of times, pushing the familiar form across, her finger held to a line, feeling...

Words: 2588 - Pages: 11

Premium Essay

Chinese vs Columbus

...Debate # 1 For the first debate that we are talking about in class is if the Chinese actually discovered America before Christopher Columbus. The two arguments between the yes (Gavin Menzies) and the no (Robert Finlay). Menzies is the yes the Chinese found American first. He says that the Chinese spent four months exploring the pacific coastline and left substantial evidence that will support his contention that the chines found America way before the Europeans. Finlay believes that Menzies does not have concrete evidence that the Chinese found America because other historians have not come up with the same conclusion, that the Chinese discovered America first Robert Finlay talks about how Menzies is wrong and how he bases all his knowledge on facts and evidence that puts the Chinese on America before Columbus. Finlay accuses Menzies of “ignoring the basic rules of historical study and logic to concoct an implausible interpretation of the Chinese”. Finlay believes that Columbus found America first because they used the maps of the Chinese. When the Chinese explored the pacific coast they didn’t set foot on the land they just made a map that told there was land. The Chinese then used the maps that they made to trade with the Europeans for other goods. Then Columbus used the maps to find other land to colonize and make a new colony to spread. Finlay believes that Columbus explored the land and actually set foot on the new America, and expanded the map by putting new locations...

Words: 638 - Pages: 3

Free Essay

Great Wall of China

... Have you every heard of Zheng He? His name was originally Ma He, he was the trusted advisor of the Emperor Yongle. The emperor sent him on a mission to guide a fleet of ships, up until recent years he was hardly known by the world. The real question is if we should celebrate Zheng He’s voyages, I personally think that we shouldn’t. You might be wondering why, well in order to make the voyage possible there was a lot of expenses and all the tribute he received was not enough to pay off the expenses, also he traveled far and didn’t find any new land or establish any new trade relationships, lastly some officials from the government said that they did not need trade or political communication so they concluded the expedition to be a big mistake. Now lets get more in to it. To start off, the voyage took a lot of expenses that couldn’t be regained by the tributes offered to Emperor Yongle. In Document D it states “ Emperor Yongle acquired goods and treasures…yet they did not makeup for the wasteful expenditures of the Middle Kingdom”. Officials or representatives from overseas would frequently return to China with Zheng He’s fleet to offer tributes. Some local leaders did it to avoid military fight; they made sure to pay their respect to the emperor. Tributes are often offerings of money or goods given by a weaker country to a stronger country. Next, Zheng He traveled far and wide and was unable to find new land or establish trade. Zheng He’s voyages only allowed him to...

Words: 478 - Pages: 2