# Earnings Management
**Source**: https://bm.hkust.edu.hk/bizinsight/tag/earnings-management
**Parent**: https://bm.hkust.edu.hk/bizinsight/bizstudies
[YANG, Yi](https://bm.hkust.edu.hk/faculty/yang-yi)
QIN, Yu
FAN, Yangyang
ZHANG, Zhongju
[Harnessing Alternative Data for Financial Forecasting](https://bm.hkust.edu.hk/bizinsight/2025/09/harnessing-alternative-data-financial-forecasting)
[Data Analytics](https://bm.hkust.edu.hk/bizinsight/tag/data-analytics)
[Earnings Management](https://bm.hkust.edu.hk/bizinsight/tag/earnings-management)
[Stock Market](https://bm.hkust.edu.hk/bizinsight/tag/stock-market)
Financial technology is transforming the world of financial services. Using big data analytics to enhance decision-making in areas such as portfolio and risk management has become a top priority for many financial institutions. Thanks to HKUST’s Yi Yang and co-researchers, institutions and investors now have a novel system for predicting financial risk that
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[Read More](https://bm.hkust.edu.hk/bizinsight/2025/09/harnessing-alternative-data-financial-forecasting)
[ [BizStudies](https://bm.hkust.edu.hk/bizinsight/bizstudies "BizStudies") ]
[Read Full Paper](https://misq.umn.edu/misq/article-abstract/47/1/63/2217/Unlocking-the-Power-of-Voice-for-Financial-Risk?redirectedFrom=fulltext)
[BISETTI, Emilio](https://bm.hkust.edu.hk/faculty/bisetti-emilio)
KAROLYI, Stephen A
[The Perils of Performance Targeting](https://bm.hkust.edu.hk/bizinsight/2025/08/perils-performance-targeting)
[Firm Performance](https://bm.hkust.edu.hk/bizinsight/tag/firm-performance)
[Targeting](https://bm.hkust.edu.hk/bizinsight/tag/targeting)
[Earnings Management](https://bm.hkust.edu.hk/bizinsight/tag/earnings-management)
[banks](https://bm.hkust.edu.hk/bizinsight/tag/banks)
Performance targeting—setting short-term financial goals—is pervasive in today’s financial markets, but it may come at a cost. HKUST’s Emilio Bisetti and a colleague explore how public banks strategically alter their deposit pricing strategies when they face pressure to meet earnings per share (EPS) targets. “The general consensus is that, by encouraging
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[Read More](https://bm.hkust.edu.hk/bizinsight/2025/08/perils-performance-targeting)
[ [BizStudies](https://bm.hkust.edu.hk/bizinsight/bizstudies "BizStudies") ]
[Read Full Paper](https://onlinelibrary.wiley.com/doi/epdf/10.1111/jofi.13369)
[HSU, Charles](https://bm.hkust.edu.hk/faculty/hsu-charles)
WANG, Rencheng
WHIPPLE, Benjamin C.
[Non-GAAP Reporting Can Store Up Trouble](https://bm.hkust.edu.hk/bizinsight/2023/06/non-gaap-reporting-can-store-trouble)
[Accounting](https://bm.hkust.edu.hk/bizinsight/tag/accounting)
[Earnings Management](https://bm.hkust.edu.hk/bizinsight/tag/earnings-management)
[Stock Market](https://bm.hkust.edu.hk/bizinsight/tag/stock-market)
[Regulation](https://bm.hkust.edu.hk/bizinsight/tag/regulation)
Research by the HKUST’s Charles Hsu shows that disclosures of non-GAAP earnings numbers are associated with a greater risk of stock price crashes. Working with international collaborators, Hsu found that non-GAAP disclosures enable managers to divert investors’ attention from bad news included in GAAP earnings. This mechanism, which is substitutive to
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[Read More](https://bm.hkust.edu.hk/bizinsight/2023/06/non-gaap-reporting-can-store-trouble)
[ [BizStudies](https://bm.hkust.edu.hk/bizinsight/bizstudies "BizStudies") ]
[Read Full Paper](https://www.sciencedirect.com/science/article/pii/S0165410121000884)
[HSU, Charles](https://bm.hkust.edu.hk/faculty/hsu-charles)
WANG, Rencheng
[Bundling Strategy Benefits Firms and Investors](https://bm.hkust.edu.hk/bizinsight/2022/08/bundling-strategy-benefits-firms-and-investors)
[Management Performance](https://bm.hkust.edu.hk/bizinsight/tag/management-performance)
[Analyst Forecasts](https://bm.hkust.edu.hk/bizinsight/tag/analyst-forecasts)
[Earnings Management](https://bm.hkust.edu.hk/bizinsight/tag/earnings-management)
Financial analysts are crucial information intermediaries in capital markets. Their consensus earnings estimates are widely used to assess firm performance. Given the market influence of financial analysts, managers have an incentive to issue earnings guidance to help analysts update their earnings expectations. Firms commonly issue earnings guidance at the
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[Read More](https://bm.hkust.edu.hk/bizinsight/2022/08/bundling-strategy-benefits-firms-and-investors)
[ [BizStudies](https://bm.hkust.edu.hk/bizinsight/bizstudies "BizStudies") ]
[Read Full Paper](https://onlinelibrary.wiley.com/doi/epdf/10.1111/1911-3846.12686)
DEFOND, Mark
HU, Jinshuai
[HUNG, Mingyi](https://bm.hkust.edu.hk/faculty/hung-mingyi)
LI, Siqi
[Fair Value Accounting Impedes Performance Evaluation](https://bm.hkust.edu.hk/bizinsight/2022/01/fair-value-accounting-impedes-performance-evaluation)
[Accounting](https://bm.hkust.edu.hk/bizinsight/tag/accounting)
[Earnings Management](https://bm.hkust.edu.hk/bizinsight/tag/earnings-management)
[Firm Performance](https://bm.hkust.edu.hk/bizinsight/tag/firm-performance)
[Management Performance](https://bm.hkust.edu.hk/bizinsight/tag/management-performance)
“Fair value” is a gold standard in valuation, but there is no consensus on its usefulness in other areas, such as evaluating management performance. HKUST’s Mingyi Hung and her colleagues settle this dispute in important new work, contending that fair value accounting may actually be unhelpful when it comes to contracting. This finding is particularly
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[Read More](https://bm.hkust.edu.hk/bizinsight/2022/01/fair-value-accounting-impedes-performance-evaluation)
[ [BizStudies](https://bm.hkust.edu.hk/bizinsight/bizstudies "BizStudies") ]
[Read Full Paper](https://www.sciencedirect.com/science/article/pii/S0165410120300434)
HANN, Rebecca N.
KIM, Heedong
[ZHENG, Yue](https://bm.hkust.edu.hk/faculty/zheng-yue)
[Firms’ Information Environment: Implications for Investors’ and Managers’ Decisions](https://bm.hkust.edu.hk/bizinsight/2021/02/firms-information-environment-implications-investors-and-managers-decisions)
[Earnings Management](https://bm.hkust.edu.hk/bizinsight/tag/earnings-management)
[Online Information](https://bm.hkust.edu.hk/bizinsight/tag/online-information)
[Investment Decision](https://bm.hkust.edu.hk/bizinsight/tag/investment-decision)
[Firm Behavior](https://bm.hkust.edu.hk/bizinsight/tag/firm-behavior)
An earnings announcement – a public statement of a company’s profitability, usually issued on a quarterly basis – provides useful information to assess peer firms’ expected cash flows, as well as the uncertainty regarding their expected cash flows. While there is a large body of research on whether there are intra-industry information transfers around
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[Read More](https://bm.hkust.edu.hk/bizinsight/2021/02/firms-information-environment-implications-investors-and-managers-decisions)
[ [BizStudies](https://bm.hkust.edu.hk/bizinsight/bizstudies "BizStudies") ]
[HUANG, Allen](https://bm.hkust.edu.hk/faculty/huang-allen)
[The Benefits of Short-selling](https://bm.hkust.edu.hk/bizinsight/2020/11/benefits-short-selling)
[Layperson Talk](https://bm.hkust.edu.hk/bizinsight/tag/layperson-talk)
[Short-selling](https://bm.hkust.edu.hk/bizinsight/tag/short-selling)
[Earnings Management](https://bm.hkust.edu.hk/bizinsight/tag/earnings-management)
[Price Efficiency](https://bm.hkust.edu.hk/bizinsight/tag/price-efficiency)
Short sellers have been known to uncover companies that engage in financial. Indeed, several activist short sellers like Muddy Waters Research and Citron Research make a name for themselves by proactively targeting fraudsters, bringing their misconducts to light, and profiting from their price decline. Not surprisingly, managers should consider the cost and
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[Read More](https://bm.hkust.edu.hk/bizinsight/2020/11/benefits-short-selling)
[ [BizTalks](https://bm.hkust.edu.hk/bizinsight/biztalks "BizTalks") ]
[Watch Video](https://video.ust.hk/Watch.aspx?Video=5B9E33A6373BE165&embed=Y)
[Read Full Paper](https://www.allenhuang.org/uploads/2/6/5/5/26555246/fang_huang_and_karpoff_2016.pdf)