Notice of RetractionAn empirical study on earnings manipulation through debt restructuring based on the new accounting standards

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Year from 2005 to 2007 provides a unique institutional background to study the earnings manipulation through debt restructuring, during which no big macro-economic change influencing debt restructuring occurred and the security regulating of de-listing remained static. As a result, the major factors that influence debt restructuring concentrate on the change of related income from debt restructuring included in current income and extraordinary items due to the change of accounting standards. Taking advantage of this background, this paper analyzes the change of debt restructuring of the listed companies in financial distress before and after 2007. We find that the listed companies in financial distress do manipulate earnings through debt restructuring, and the avoidance of being de-listing makes the major factor.