Stock-Based Compensation at Twitter
Citation:
Heese, Jonas, Zeya Yang, and Mike Young. "Stock-Based Compensation at Twitter." Harvard Business School Teaching Note 119-059, November 2018. (Revised February 2020.) View Details|
Article European Accounting Review 2018 The Role of Overbilling in Hospitals' Earnings Management Decisions |
Abstract
This paper examines the role of overbilling in hospitals’ earnings management choices. Overbilling by hospitals is a form of revenue manipulation that involves misclassifying a patient into a diagnosis-related group that yields higher reimbursement. As overbilling allows hospitals to increase revenues without altering operations, affecting costs, or having to reverse such behavior in the future, I propose and find that overbilling reduces hospitals’ use of managing accruals or cutting discretionary expenditures. Next, I find that hospital managers prefer overbilling to managing accruals (cutting discretionary expenditures) when cutting discretionary expenditures (managing accruals) is constrained and vice versa. Collectively, my findings suggest that overbilling is an important alternative manipulation tool in hospitals.
Keywords: Overbilling; accrual-based earnings management; real activities manipulation; for-profit hospitals; Earnings Management; Health Industry;
Citation:
Heese, Jonas. "The Role of Overbilling in Hospitals' Earnings Management Decisions." European Accounting Review 27, no. 5 (2018).
