Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

George Batta

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Managers perform employ different forms of accounting techniques to manipulate earnings. There are many different reasons as to why they manipulate their earnings but one of them is to avoid covenant violations. We combine a novel data set which contains information about the count of covenants found in credit agreements and see if it can predict earnings management. We find that the count of covenants explains a small variation in the performance adjusted accruals. This can potentially be explained by there being a wide variety of other factors that would lead to earnings management.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.