To identify companies subject to accounting enforcement actions by the SEC, I used Accounting
and Auditing Enforcement Releases (AAERs) #132 through #502, issued from 1987 to 1993. After elimination of inappropriate companies from the 363 AAERs examined (#372 to #379 were not assigned by the SEC), this search yielded a final sample of 103 AAERs relating to 49 companies that violated GAAP.....2
An extensive media search on LEXIS-NEXIS for January 1987 to April 1993 identified 80 companies mentioned in articles discussing earnings manipulation.3 After elimination of eight companies that were also identified by the AAER search
and of other inappropriate companies from this search, the final sample from the new search was 40 companies.