@article{289de11677c74d6586c9003b4b8f8678,
title = "Relative performance evaluation and the timing of earnings release",
abstract = "Relative performance evaluation (RPE) compensates managers on their relative performance against a peer group. Since observing more peers{\textquoteright} performance allows managers to better estimate the performance level required to achieve RPE targets, we conjecture that releasing earnings later than peers facilitates managers to achieve targets by exploiting last-minute reporting discretion. Empirical evidence is consistent with our conjecture. Further, managers tend to select peers that release earnings more timely and delay own firms{\textquoteright} earnings releases to be later than peers{\textquoteright} after RPE adoption. Our evidence suggests strategic timing of earnings release and discretionary reporting in response to relative performance evaluation.",
keywords = "Accounting-based performance target, Earnings management, Earnings release timing, Relative performance evaluation",
author = "Guojin Gong and Li, \{Laura Yue\} and Huifang Yin",
note = "We are grateful for helpful comments from Mark Bagnoli, Mary Ellen Carter, Dan Givoly, Wayne Guay (the Editor), Iny Hwang, Rick Mergenthaler, Dhananjay Nanda, Mort Pincus, Shiva Rajgoapal, Frances Tice, David Tsui (the Referee), Mohan Venkatachalam, Susan Watts, and workshop participants at University of Illinois at Urbana-Champaign, University of Iowa, University of Purdue, Shanghai University of Finance and Economics, 2017 Utah Winter Conference, 2017 AAA annual meeting, 2017 APMAA conference and MAS 2018 Mid-year Conference for helpful comments. Laura Li gratefully acknowledges financial support from the PricewaterhouseCoopers Faculty Fellowship at the University of Illinois at Urbana-Champaign. Huifang Yin acknowledges the financial support from the MOE project of Key Research Institute of Humanities and Social Science in University (No. 15JJD630008). We are grateful for helpful comments from Mark Bagnoli, Mary Ellen Carter, Dan Givoly, Wayne Guay (the Editor), Iny Hwang, Rick Mergenthaler, Dhananjay Nanda, Mort Pincus, Shiva Rajgoapal, Frances Tice, David Tsui (the Referee), Mohan Venkatachalam, Susan Watts, and workshop participants at University of Illinois at Urbana-Champaign, University of Iowa, University of Purdue, Shanghai University of Finance and Economics, 2017 Utah Winter Conference, 2017 AAA annual meeting, 2017 APMAA conference and MAS 2018 Mid-year Conference for helpful comments. Laura Li gratefully acknowledges financial support from the PricewaterhouseCoopers Faculty Fellowship at the University of Illinois at Urbana-Champaign. Huifang Yin acknowledges the financial support from the MOE project of Key Research Institute of Humanities and Social Science in University (No. 15JJD630008).? We are grateful for helpful comments from Mark Bagnoli, Mary Ellen Carter, Dan Givoly, Wayne Guay (the Editor), Iny Hwang, Rick Mergenthaler, Dhananjay Nanda, Mort Pincus, Shiva Rajgoapal, Frances Tice, David Tsui (the Referee), Mohan Venkatachalam, Susan Watts, and workshop participants at University of Illinois at Urbana-Champaign, University of Iowa, University of Purdue, Shanghai University of Finance and Economics, 2017 Utah Winter Conference, 2017 AAA annual meeting, 2017 APMAA conference and MAS 2018 Mid-year Conference for helpful comments. Laura Li gratefully acknowledges financial support from the PricewaterhouseCoopers Faculty Fellowship at the University of Illinois at Urbana-Champaign. Huifang Yin acknowledges the financial support from the MOE project of Key Research Institute of Humanities and Social Science in University (No. 15JJD630008).",
year = "2019",
month = apr,
day = "1",
doi = "10.1016/j.jacceco.2019.03.002",
language = "English (US)",
volume = "67",
pages = "358--386",
journal = "Journal of Accounting and Economics",
issn = "0165-4101",
publisher = "Elsevier B.V.",
number = "2-3",
}