A7Firmsuseofaccountingdicretiontoinfluencetheircreditratings..doc

Firms’ use of accounting discretion to influence their credit ratings企业的运用会计自由裁量权，以影响他们的信用评级 This paper examines whether firms that deviate from an empirically modeled (‘‘expected’’) credit rating engage in earnings management activities, as measured by abnormal accruals and real activities earnings management. We find evidence that firms use income-increasing (-decreasing) earnings management activities when they are below (above) their expected ratings. We then test whether such actions are successful in helping these firms move toward their expected credit ratings. The results suggest that firms below or above their expected credit ratings may be able to move toward expected ratings through the use of directional earnings management. 本文探讨了从经验模型（预期）信用评级偏离企业是否从事盈余管理活动，如异常应计和实际活动盈余管理计量。我们发现的证据表明，公司使用的收入增加（递减）盈余管理活动时，它们低于（高于）其预期评级。然后我们测试这些行动是否成功地帮助这些企业走向他们预期的信贷评级。结果表明，低于或高于其预期信用评级公司可能能够朝着预期评级通过使用定向盈余管理的动。 1. Introduction Firms care deeply about their credit ratings. Recent survey evidence presented by Graham and Harvey (2001) shows that chief financial officers pay strong attention to their firms’ credit ratings when making capital structure decisions. Kisgen (2006) finds that firms near a broad rating boundary issue less debt than firms elsewhere, indicating that firms attempt to avoid downgrades and obtain upgrades. Kisgen (2009) finds additional evidence suggesting that firms are more likely to change their capital structure to reverse recent negative changes in their credit ratings. Taken together, these studies suggest that firms focus on specific credit ratings and that these ratings hold meaning for managers. Deviating from an expected credit rating could have significant implications for firms’ access to capital. For example, a firm slightly below the investment-grade threshold can experience a significant increase in its access to new investors by achieving a rating upgrade. Most likely new investors were not investing in the firm before the upgrade because