scholarly journals Social Desirability Bias and Earnings Management around the World

2015 ◽  
Vol 47 (1) ◽  
pp. 56-70 ◽  
Author(s):  
Paweł Niszczota

Abstract In this paper we test whether inter-country variation in individuals’ tendency to conform, as measured by the Lie (social desirability) scale used in the Eysenck Personality Questionnaire, can explain differences in the propensity to employ corporate earnings management around the world. Such a link is feasible, given that survey data suggest executives tend to be under severe pressure to meet earnings benchmarks, to which they often succumb by engaging in earnings management (to the detriment of the company’s long-term prospects). We hypothesize that in countries where the propensity to act in a socially desirable (outsider-satisfying) way is stronger, earnings management should be more prevalent. Research results support our hypothesis, and demonstrate the existence of a positive relationship between the prevalence of earnings management in a country and the mean score of individuals from that country on the Eysenck Lie scale, which further evidences that capital market pressure is a significant determinant of earnings management.

2019 ◽  
Vol 18 (3) ◽  
pp. 97-119 ◽  
Author(s):  
Jesper Haga ◽  
Fredrik Huhtamäki ◽  
Dennis Sundvik

ABSTRACT 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.


2018 ◽  
Vol 11 (7) ◽  
pp. 4059-4072 ◽  
Author(s):  
Sergio Fabián León-Luis ◽  
Alberto Redondas ◽  
Virgilio Carreño ◽  
Javier López-Solano ◽  
Alberto Berjón ◽  
...  

Abstract. Total ozone column measurements can be made using Brewer spectrophotometers, which are calibrated periodically in intercomparison campaigns with respect to a reference instrument. In 2003, the Regional Brewer Calibration Centre for Europe (RBCC-E) was established at the Izaña Atmospheric Research Center (Canary Islands, Spain), and since 2011 the RBCC-E has transferred its calibration based on the Langley method using travelling standard(s) that are wholly and independently calibrated at Izaña. This work is focused on reporting the consistency of the measurements of the RBCC-E triad (Brewer instruments #157, #183 and #185) made at the Izaña Atmospheric Observatory during the period 2005–2016. In order to study the long-term precision of the RBCC-E triad, it must be taken into account that each Brewer takes a large number of measurements every day and, hence, it becomes necessary to calculate a representative value of all of them. This value was calculated from two different methods previously used to study the long-term behaviour of the world reference triad (Toronto triad) and Arosa triad. Applying their procedures to the data from the RBCC-E triad allows the comparison of the three instruments. In daily averages, applying the procedure used for the world reference triad, the RBCC-E triad presents a relative standard deviation equal to σ = 0.41 %, which is calculated as the mean of the individual values for each Brewer (σ157 = 0.362 %, σ183 = 0.453 % and σ185 = 0.428 %). Alternatively, using the procedure used to analyse the Arosa triad, the RBCC-E presents a relative standard deviation of about σ = 0.5 %. In monthly averages, the method used for the data from the world reference triad gives a relative standard deviation mean equal to σ = 0.3 % (σ157 = 0.33 %, σ183 = 0.34 % and σ185 = 0.23 %). However, the procedure of the Arosa triad gives monthly values of σ = 0.5 %. In this work, two ozone data sets are analysed: the first includes all the ozone measurements available, while the second only includes the simultaneous measurements of all three instruments. Furthermore, this paper also describes the Langley method used to determine the extraterrestrial constant (ETC) for the RBCC-E triad, the necessary first step toward accurate ozone calculation. Finally, the short-term or intraday consistency is also studied to identify the effect of the solar zenith angle on the precision of the RBCC-E triad.


2001 ◽  
Vol 17 (3) ◽  
pp. 222-232 ◽  
Author(s):  
Joachim Stöber

Summary: Four studies are presented investigating the convergent validity, discriminant validity, and relationship with age of the Social Desirability Scale-17 (SDS-17). As to convergent validity, SDS-17 scores showed correlations between .52 and .85 with other measures of social desirability (Eysenck Personality Questionnaire-Lie Scale, Sets of Four Scale, Marlowe-Crowne Scale). Moreover, scores were highly sensitive to social-desirability-provoking instructions (job-application instruction). Finally, with respect to the Balanced Inventory of Desirable Responding, SDS-17 scores showed a unique correlation with impression management, but not with self-deception. As to discriminant validity, SDS-17 scores showed nonsignificant correlations with neuroticism, extraversion, psychoticism, and openness to experience, whereas there was some overlap with agreeableness and conscientiousness. With respect to relationship with age, the SDS-17 was administered in a sample stratified for age, with age ranging from 18 to 89 years. In all but the oldest age group, the SDS-17 showed substantial correlations with the Marlowe-Crowne Scale. The influence of age (cohort) on mean scores, however, was significantly smaller for the SDS-17 than for the Marlowe-Crowne Scale. In sum, results indicate that the SDS-17 is a reliable and valid measure of social desirability, suitable for adults of 18 to 80 years of age.


1969 ◽  
Vol 24 (3) ◽  
pp. 903-906 ◽  
Author(s):  
Allen L. Edwards ◽  
Robert D. Abbott

High- and low-scoring groups on the R scale of the MMPI were selected For each group the mean probability of a True response, P(T), on 26 scales was obtained. The social desirability scale values of the items increased from scale to scale. On all 26 scales, low scorers on the R scale had a higher mean probability of a True response than high scorers. The regression lines of P(T) on SDSV for the two groups had approximately the same slopes and differed only in terms of their intercepts. The study was replicated with three additional samples and comparable results were obtained in each case.


2003 ◽  
Vol 21 (12) ◽  
pp. 2288-2293 ◽  
Author(s):  
Annie On-On Chan ◽  
Kent-Man Chu ◽  
Shiu-Kum Lam ◽  
Benjamin Chun-Yu Wong ◽  
Ka-Fai Kwok ◽  
...  

Purpose: To evaluate whether pretherapeutic serum soluble E-cadherin is an independent factor predicting long-term survival in gastric cancer. Gastric cancer remains the second leading cause of cancer-related deaths in the world, but a satisfactory tumor marker is currently unavailable for gastric cancer. Soluble E-cadherin has recently been found to have prognostic value in gastric cancer. Patients and Methods: One hundred sixteen patients with histologically proven gastric adenocarcinoma were included in the trial. Pretherapeutic serum was collected, and soluble E-cadherin was assayed using a commercially available enzyme-linked immunosorbent assay kit. The patients were followed up prospectively at the outpatient clinic. Results: There were 75 men and 41 women, with a mean (± SD) age of 66 ± 14 years. Forty-eight percent of tumors were located in the gastric antrum. The median survival time was 11 months. The mean pretherapeutic value of soluble E-cadherin was 9,159 ng/mL (range, 6,002 to 10,025 ng/mL), and the mean pretherapeutic level of carcinoembryonic antigen was 11 ng/mL (range, 0.3 to 4,895 ng/mL). On multivariate analysis, soluble E-cadherin is an independent factor predicting long-term survival. Ninety percent of patients with a serum level of E-cadherin greater than 10,000 ng/mL had a survival time of less than 3 years (P = .009). Conclusion: Soluble E-cadherin is a potentially valuable pretherapeutic prognostic factor in patients with gastric cancer.


1993 ◽  
Vol 73 (3_suppl) ◽  
pp. 1218-1218 ◽  
Author(s):  
Rebecca B. Spohn

To examine the social desirability correlates for acceptance of rape myths, university students, 134 women and 56 men, completed the Rape Myth Acceptance Scale and the Marlowe-Crowne Social Desirability Scale. The mean score on the former was 98.8 and for the latter 14.3. Over-all, scores on the Marlowe-Crowne Social Desirability Scale were not significantly correlated with scores on the Rape Myth Acceptance Scale ( r = .10). Values were .03 for women and .16 for men.


1966 ◽  
Vol 19 (3_suppl) ◽  
pp. 1271-1277
Author(s):  
Binyamin Z. Lebovits ◽  
Adrian M. Ostfeld

A set of actual scores on the MMPI are compared with a set of SD-generated scores. However, the SD-generated scores are not obtained in the usual way, viz., from the mean SD score of Ss. Instead, the SD score of each S is taken separately and an MMPI profile is generated for him. 15 MMPI scales are examined. The differences between the actual means and the means of the SD-generated scores are evaluated using the t test and the Pearson product-moment correlation. The results show that for 14 of the 15 scales the differences between the means are significant ( p ≤ .01), and that 11 of the 15 correlations are significantly different from zero. However, the correlations account for only a relatively small portion of the variance. Only in the case of 4 scales does the correlation account for as much as 45 to 65% of the variance. The authors recommend, on the basis of the data and a logical analysis, that the SD-generated scores not be used as a substitute for the actual scores on the MMPI.


2018 ◽  
Vol 10 (3) ◽  
pp. 504-523 ◽  
Author(s):  
Dong-Ik Kim ◽  
Dawei Han

Abstract Long term climate data are vitally important in reliably assessing water resources and water related hazards, but in-situ observations are generally sparse in space and limited in time. Although there are several global datasets available as substitutes, there is a lack of comparative studies about their suitability in different parts of the world. In this study, to find out the reliable century-long climate dataset in South Korea, we first evaluate multi-decadal reanalyses (ERA-20 cm, ERA-20c, ERA-40 and NOAA 20th century reanalysis (20CR)) and gridded observations (CRUv3.23 and GPCCv7) for monthly mean precipitation and temperature. In the temporal and statistical comparisons, CRUv3.23 and GPCCv7 for precipitation and ERA-40 for temperature perform the best, and ERA-20c and 20CR also indicate meaningful agreements. For ERA-20 cm, it has only a statistical agreement, but the mean has the difficulty in representing its ensemble. This paper also shows that the applicability of each dataset may vary by region and all products should be locally adjusted before being applied in climate impact assessments. These findings not only help to fill in the knowledge gaps about these datasets in South Korea but also provide a useful guideline for the applicability of the global datasets in different parts of the world.


1971 ◽  
Vol 29 (2) ◽  
pp. 487-495 ◽  
Author(s):  
Christopher Orpen

To investigate the relative susceptibility of catch-phrase versus propositional (traditional) scales the Crowne-Marlowe (C-M) scale of social desirability, as well as the Wilson-Patterson (W-P) catch-phrase conservatism scale and a specially constructed propositional conservatism scale covering the same content area, were given to 90 South African high-school pupils under anonymous conditions and instructions to fake a ‘conservative’ or ‘liberal’ impression. A similar group of 40 Ss rated the various items in the two scales in terms of their social desirability. Finally, a similar group of 80 Ss completed the two scales under ‘real life’ conditions that have been shown to ‘demand’ liberal and conservative replies respectively. Since (a) the correlation with the C-M social desirability scale was significantly lower for the W-P scale, (b) the difference between Ss' scores under anonymous and faking conditions was significantly smaller for the W-P scale, and (c) the mean scores of the two unlike ‘real life’ conditions for the groups given the W-P scale differed more than those given the other scale, it was concluded that, as regards these scales, the catch-phrase type of questionnaire shows less susceptibility to social desirability.


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