... performance-matched, NU and nonlinear accrual models in Panels A, B, and C, respectively I assume that the GAO MA sample observations encompass earnings management and that discretionary accruals ... β equals B and may result in biased discretionary accruals and false inferences of earnings management I discuss the AC likely biases separately for the upward and downward earnings management ... research has examined earnings management via consideration of specific accruals, total accruals, and the decomposition of AC total accruals to their abnormal and discretionary components Normal...