arbiter
JournalsPricingAccount

The nexus between earnings management and information asymmetry: an empirical analysis based on US firm data

Qazi Ghulam Mustafa Qureshi

International Journal of Accounting, Auditing and Performance Evaluation2026https://doi.org/10.1504/ijaape.2026.151941article
AJG 2ABDC C
Weight
0.50

What the paper says

The study shows evidence that, even when firms use their discretion to manage earnings, they can effectively reduce information asymmetry through earnings announcements. The study provides strong empirical support for the possible causes of information asymmetry, especially earnings management. It implies that earnings announcements provide enough information to the market for analysts to modify their forecasts and achieve consensus. The study's empirical analysis of the pre-COVID period reveals a larger positive link between the magnitude of earnings management and the dispersion of pre-disclosure forecasts than post-disclosure forecasts. The results suggest earnings management exacerbates information asymmetry, while the information provided through financial reports minimises post-disclosure information asymmetry and promotes consensus among analysts' forecasts. With a comparative analysis of pre- and post-disclosure information asymmetry, this study offers analysts and investors alike, to consider earnings management as an important factor in making their forecasting and investing decisions.

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1504/ijaape.2026.151941

Or copy a formatted citation

@article{qazi2026,
  title        = {{The nexus between earnings management and information asymmetry: an empirical analysis based on US firm data}},
  author       = {Qazi Ghulam Mustafa Qureshi},
  journal      = {International Journal of Accounting, Auditing and Performance Evaluation},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1504/ijaape.2026.151941},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The nexus between earnings management and information asymmetry: an empirical analysis based on US firm data

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.