Mellado-Cid, CristhianJory, Surendranath R.Ngo, Thanh2020-04-212020-04-212017-06-01http://hdl.handle.net/10342/8259We examine real activities manipulation by firms prior to their debt issuances andhow such manipulation activities affect bond yield spreads. We find that bond-issuing firmsincrease their real activities manipulation in the five quarters leading to a bond issuance. Wedocument an inverse association between yield spread and pre-issue real activities manipula-tion, i.e., firms engaged in abnormally high levels of real activities manipulation are associatedwith subsequent lower cost of debt.Article10.1016/j.brq.2017.04.004