Earnings management: Who do managers consider and what is the relative importance of ethics?

Autor:	Paul Coram, James R. Frederickson, Matthew Pinnuck
Rok vydání:	2022
Předmět:	General Business Management and Accounting
Zdroj:	Australian Journal of Management. :031289622211372
ISSN:	1327-2020 0312-8962
DOI:	10.1177/03128962221137235
Popis:	Using responses from Australian CFOs and CEOs to a case-based survey and interviews, we provide insights into managers’ earnings management (EM) decisions. Ethics has the greatest explanatory power for our participants’ EM assessments. Ethical concerns about EM deter EM, but surprisingly, ethical concerns about not managing earnings and missing market expectations motivate EM. The primary economic motivation for EM is shielding current shareholders from the short-term costs of missing market expectations. We find considerable heterogeneity regarding the extent to which CFOs and CEOs believe EM is lying. Finally, CFOs and CEOs believe that each are significantly involved in initiating EM. JEL Classification: M40, M41, M48
Databáze:	OpenAIRE
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