literature review

Topic: causes and consequences of earnings management

Research question: Whether CEO’s equity-based compensation can lead to earnings management.

Hypothesis (author’s stance): Firms whose CEOs with Equity-based compensation are more likely to engage in earnings management.

Key paper: CEO incentives and earnings management (Daniel Bergstresser and Thomas Philippon, 2006)

Key factors should be included: earnings quality, earnings management, CEO’s equity-based compensation (related theory, literature), and previous study about the research question. (generally, 20 articles should be cited in this part)

Criteria:

Overview of Literature review

The purpose of the literature review is to present for the reader a concise overview of literature relevant to your research questions. You should set out the key research themes and main arguments (relevant to your research questions). A description of what others have said is not enough. You should evaluate what they have said, maybe by asking yourself whether their research was done in one place, in a particular way, with particular subjects, and is relevant to a particular context. The coherent argument in your literature review will be demonstrated in the way you use the work of others to underpin your research questions and research methods. The literature review also demonstrates a number of skills to its readers. It should show accuracy of reading and of reporting. It should show accuracy in citing references and in quoting material. It should demonstrate skills in using and commenting on cited materials in developing an argument. The chapter should demonstrate ability to synthesise a volume of material and to sift out key themes. The chapter should demonstrate an ability to evaluate differing sources. It should show ability to write a 20 balanced review and not simply to highlight sources that support a favoured perspective.

You may decide that more than one chapter is needed here. A library-based dissertation can be a series of connected literature reviews in which each investigates an aspect of the substantive issue you have chosen. You need to identify two or three aspects of your chosen topic which can be dealt with in this way. Each chapter should clarify your position and enhance your understanding of the various sources you are using. It should focus clearly upon the selected aspect of your topic. Each should be critical, analytical and evaluative, rather than a merely descriptive account of what has been published. Each chapter should have a title which clearly conveys the nature of the aspect of your topic with which it deals. The number of these separate chapters will depend upon the topic which you have chosen and the way in which you have decided to treat it.

Wide-ranging, independent reading evident

Excellent knowledge and understanding

Critical appraisal strongly evident

Development of original thinking and insights

Excellent organisation of literature allowing for well-reasoned arguments

High degree of coherence