Impact of earnings manipulation on valuation of publicly traded restaurant firms in the United States

Arun Upneja, Michael C. Dalbor, Seoki Lee, Zhenxing Mao

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

Manipulation of earnings by publicly traded firms is a well-known phenomenon and the subject of considerable attention in both academic and trade circles. Despite widespread attention to this topic in financial literature, it has received scant attention in the restaurant industry. This research assesses whether earnings manipulation in the publicly traded restaurant firms are being rewarded by the capital markets. We have an a priori expectation that firms that do not manipulate earnings will have higher returns. However, our results indicate a significant and positive relationship between earnings manipulation indicators and stock price increases.

Original languageEnglish (US)
Pages (from-to)124-137
Number of pages14
JournalJournal of Foodservice Business Research
Volume11
Issue number2
DOIs
StatePublished - Jun 13 2008

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All Science Journal Classification (ASJC) codes

  • Food Science

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