Earnings Manipulation and Predicting Stock Returns
Pattarkine, Uma Vikram
Area of Honors:
Interdisciplinary in Accounting and Finance
Bachelor of Science
Edward Eugene Babcock Jr., Thesis Supervisor James Alan Miles, Honors Advisor Orie Edwin Barron, Honors Advisor
Earnings manipulation stock returns Fama French Carhart M-Score dot-com bubble
This study investigates earnings manipulation in the telecommunications industry in the early 2000s and evaluates whether an accounting-based earnings manipulation model (M-Score) could accurately flag manipulators before they were required to restate earnings by the Securities and Exchange Commission. The M-Score, coupled with the three Fama-French factors and the Carhart momentum factor, could also predict future stock returns.