Long-Term Orientation and Earnings Management Strategies

Autor:	Fredrik Huhtamäki, Dennis Sundvik, Jesper Haga
Rok vydání:	2019
Předmět:	050208 finance Earnings management Orientation (mental) Accounting 0502 economics and business 05 social sciences National culture Demographic economics 050201 accounting Business Business and International Management Term (time)
Zdroj:	Journal of International Accounting Research. 18:97-119
ISSN:	1558-8025 1542-6297
DOI:	10.2308/jiar-52501
Popis:	In this study, we investigate how country-level long-term orientation affects managers' willingness to engage in earnings management and choice of earnings management strategy. Using a comprehensive dataset of 47 countries for the period from 2003 to 2015, we find that firms in long-term-oriented cultures rely relatively more on earnings management through accruals, while firms in short-term-oriented cultures engage in relatively more real earnings management. Furthermore, we find a larger discontinuity around earnings benchmarks in long-term-oriented cultures suggesting that manipulation of accruals enables benchmark beating with high precision. JEL Classifications: M14; M16; M21; M41.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::c2abb6f6e89c846217ccb1b530ed8f3d https://doi.org/10.2308/jiar-52501 Zobrazit plný text záznamu Plný text ve formátu PDF