scholarly journals COMPARISON OF THE TERMS CREATIVE ACCOUNTING, EARNINGS MANAGEMENT AND FRAUDULENT ACCOUNTING THROUGH BIBLIOGRAPHIC ANALYSIS

2021 ◽  
Vol 15 (2) ◽  
pp. 27-37
Author(s):  
Roman Hlawiczka ◽  
Roman Blazek ◽  
Gabriel Santoro ◽  
Gianluca Zanellato
Keyword(s):  
Earnings Management ◽  
Revenue Management ◽  
Value Added ◽  
Accounting Earnings ◽  
Interesting Insight ◽  
Creative Accounting ◽  
Keywords And Phrases ◽  
World Class ◽  
Accounting Earnings Management ◽  
Mind Maps

Research background: The article focuses on the issues of creative accounting, earnings management, and fraudulent accounting, which are global phenomena. These concepts are well known globally, as they are dealt with by many world-renowned authors. In this study, we applied bibliometric analysis to these concepts to reveal their interconnectedness. The research was conducted on a sample of more than 19,000 articles. Purpose of the article: The main goal of the study is to use the VosViewer design and visualisation program to capture and record the most common terms associated with the terms, ‘creative accounting’, ‘revenue management’, and ‘fraudulent accounting’, and to show a biometric network of the most commonly used terms. Methods: To capture and illustrate important words associated with the above terms, the VosViewer program was used, which drew mind maps that represented the words and expressions that were closest to the topic. Scientific articles from the Web of Science database, which contains many world-class articles related to the topic, were used as input data. Findings & Value added: The results of the study provided an interesting insight into the keywords associated with the issues of creative accounting, revenue management, and fraudulent accounting. The results show that the keywords and phrases are related, as several of them are repeated in each of the terms mentioned. This means that, although these terms are different in nature, they are nevertheless connected by many words and phrases. However, it remains necessary to observe that each of the given terms appears on a different colour of fraud (white, grey, or black fraud).

Earnings management in non-public companies: the case of for-profit hospice organizations

2017 ◽  
Vol 29 (1) ◽  
pp. 1-19
Author(s):  
Kelly Noe ◽  
Dana A. Forgione ◽  
Pamela C. Smith ◽  
Hanni Liu
Keyword(s):  
Earnings Management ◽  
Financial Statements ◽  
Accounting Earnings ◽  
Public Companies ◽  
For Profit ◽  
Management Literature ◽  
Political Cost ◽  
Accounting Earnings Management ◽  
Public Scrutiny ◽  
Cost Factors

We examine earnings management in non-publicly listed companies, with a focus on for-profit (FP) hospice organizations, and extend the accounting earnings management literature to the hospice industry. FP hospice organizations file Medicare cost reports that include complete financial statements not otherwise publicly available. Managers of FP hospice organizations have incentives to manage earnings to increase performancebased bonuses, meet or beat bond covenant requirements, or avoid public scrutiny. We find total accruals are significantly positively associated with profitability, debt, and size factors. However, discretionary accruals are significantly negatively associated with debt and size, but not profitability. Thus, monitoring and political cost factors appear to effectively mitigate earnings management in this industry sector.

Analysts’ reactions to firms’ real activities management

2019 ◽  
Vol 18 (4) ◽  
pp. 589-612
Author(s):  
Joonho Lee ◽  
Sung Gon Chung
Keyword(s):  
Earnings Management ◽  
Accounting Standards ◽  
Negative Association ◽  
Production Costs ◽  
Accounting Earnings ◽  
Content Type ◽  
Stock Recommendations ◽  
Future Performance ◽  
Accounting Earnings Management ◽  
Operating Activities

Purpose Firms’ real activities management (RAM) can have a more detrimental effect on firms’ future performance than accrual earnings management. This paper aims to examine whether analysts, who play an important role as information intermediaries, understand the negative effect of RAM on firms’ future performance and respond to it accordingly. Design/methodology/approach The authors investigate whether analysts lower their earnings forecasts and stock recommendations of the firms with RAM. The authors measure RAM by examining firms’ abnormal decreases in discretionary expenses, abnormal increases in production and abnormal decreases in cash flow from operations following prior literature. Findings The authors find that after controlling for earnings surprises and other important firm characteristics, analysts lower their forecasts of future annual earnings and stock recommendations of the firms that show signs of RAM. Research limitations/implications First, as in other RAM studies, the results in this study are subject to measurement errors inherent in the estimation of RAM (i.e. abnormal production costs, abnormal CFO and abnormal discretionary expenditures). Second, we include only firm-year observations that barely make positive income in our samples following the previous study. This sample selection criterion helps increase the power of the test by examining the “suspect firms group,” which are more likely to engage in earnings management. However, one can challenge that our findings on the association between RAM and analysts’ reactions could be only case-specific and cannot be generalized. Practical implications This study contributes to the literature on earnings management and especially on RAM. Specifically, none of the previous studies clearly examines whether analysts understand the negative impact of RAM on firms’ future performance and respond accordingly, although there are studies showing the negative association between RAM and firms’ future operating performance and studies showing the negative association between analysts following and RAM. Thus, filling the gap, this study provides a specific reason for the negative association between the analyst following and real earnings management presented in previous studies. Social implications The findings will be of interest to regulators, who are concerned about the potential negative consequences in which tighter accounting standards can result. For example, Ewert and Wagenhofer (2005) theoretically demonstrate that tighter accounting standards can prompt more RAM instead of accounting earnings management. The study provides important evidence supporting that such suboptimal operating activities are closely watched by analysts and are potentially penalized by the market. If the market is able to detect RAM and allocate fewer resources to the firms that engage in it, then the concerns associated with the substitution effect between accrual-based earnings management and RAM can be diminished. Originality/value Prior research suggests that tighter accounting regulations (e.g. the Sarbanes-Oxley Act) prompt more RAM than accounting earnings management. The study provides evidence supporting that such suboptimal operating activities are closely watched by analysts and are potentially penalized by the market.

scholarly journals Potential usage of Beneish's M-score under the conditions of selected segment of Slovak Economy

2021 ◽  
Vol 129 ◽  
pp. 03015
Author(s):  
Boris Kollar
Keyword(s):  
Earnings Management ◽  
Everyday Life ◽  
Statistical Methods ◽  
Financial Analysis ◽  
Value Added ◽  
Institutional Research ◽  
Comparison Analysis ◽  
Comprehensive Overview ◽  
Creative Accounting ◽  
The Impact

Research background: The motivation behind submitted article is the institutional research of earnings management. The aim is to identify the differences between the usage of creative accounting techniques in the form of Beneish’s M-score under the conditions of Slovak economy. The paper focuses on these differences and specifics and possible reasons behind them. Paper highlights also the impact of globalization on companies and therefore also behind their motives to use earnings management. It also offers several definitions of earnings management and also highlights the importance of the borderline knowledge between earnings management and fraudulent behavior. The Beneish’s model seems to be used by several of major Slovak companies in food segment. The aim was to analyse this sector of Slovak economy, because of its importance to everyday life of people. To assess the motivation behind its usage by these companies. Either it is because they want to transfer their earnings to maternal companies, or there are unexpected local circumstances. Purpose of the article: To describe specifics in the process of Beneish’s model usage under the conditions of selected segment of Slovak economy and also to highlight motivation behind its usage. Methods: The paper is built on the statistical methods, financial analysis as well as the methods of formal logic, like comparison, analysis or synthesis and deduction. Findings & Value added: Comprehensive overview of the earnings management definition, its forms and motives behind its usage and foremost specifics in its usage under the conditions of selected segments of Slovak economy.

scholarly journals Detection of earnings management in insurance companies in Slovakia

2021 ◽  
Vol 129 ◽  
pp. 03029
Author(s):  
Lucia Svabova ◽  
Roman Blazek
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Value Added ◽  
Real Data ◽  
Financial Statements ◽  
Insurance Companies ◽  
Fraudulent Financial Reporting ◽  
Creative Accounting ◽  
The World ◽  
History Of

Research background: Manipulation and the use of creative accounting or earnings management have become an increasingly popular topic in the history of researchers. Since 2002, this issue has attracted the attention of scientists and economists around the world. On the Slovak market, more than 30 insurance companies are actually operating, and some analyses have revealed that some of these insurance companies are engaging in activities that do not comply with the law. Purpose of the article: The article aims to use selected models for the detection of fraudulent financial reporting to determine whether there are unfair activities in insurance companies in Slovakia. At the same time, we evaluate the reliability of selected models and recommend the best models for this sector. Methods: Based on the set criteria, the Beneish model with five parameters and the Beneish model with eight parameters are applied to selected 20 companies in the Financial and Insurance activities sector to determine which companies have manipulated the financial statements. The analysis is performed using real data on Slovak companies from the Amadeus database. Findings & Value added: For the Financial and Insurance activities industry, we recommend using the Beneish model with eight parameters. Comparing the two models, we can conclude that this model is more accurate and thorough. The reason is also that this model works with more data from the financial statements.

scholarly journals Web Globalization and Its Possible Consequences on Usage of Different Creative Accounting Techniques

2021 ◽  
Vol 92 ◽  
pp. 02029
Author(s):  
Boris Kollar
Keyword(s):  
Earnings Management ◽  
Method Comparison ◽  
Value Added ◽  
Point Of View ◽  
Theoretical Point ◽  
Comprehensive Overview ◽  
Creative Accounting ◽  
New Directions ◽  
Definition Of ◽  
The Individual

Research background: The paper is oriented on influence analysis of globalization on usage of different techniques of creative accounting and its development. The concept of creativity and accounting in together has logical background. Creativity is generally perceived as a positive thing. It is a certain creativity and originality created by the individual. Among these techniques, the paper deals with earnings management and what differs it from fraudulent behavior. The first part deals with definition of earnings management and comparison of different approaches. The second part outlines the major differences and boarders between earnings management and fraud from theoretical point of view with the usage of multiple views from different authors. Third part deals with different forms of earnings management. The last part discusses motives behind the usage of earnings management by managers and impact of globalization on this decision making. Purpose of the article: To describe motives behind earnings management usage and potential new directions of these motives under the conditions of continuous internalization and globalization. Methods: The paper is built on the methods of formal logic. The most important one for the purpose of this article is descriptive method. Among others, there are analysis, graphic method, comparison and synthesis. Findings & Value added: Comprehensive overview of the earnings management definition, its forms and motives behind its usage.

scholarly journals Survey Some of the Factors Influencing Ethical Judgments of the Earnings Management

2012 ◽  
Vol 2 (1) ◽  
pp. 203
Author(s):  
Mohammad Hossein Vadiei Nowghabi ◽  
Saleh Anbarani
Keyword(s):  
Earnings Management ◽  
Ethical Perception ◽  
Management Scenarios ◽  
Accounting Earnings ◽  
Accounting Management ◽  
Factors Influencing ◽  
Significant Difference ◽  
Accounting Numbers ◽  
Accounting Earnings Management ◽  
Senior Students

Earnings management is using judgment in reporting financial results and in structuring transactions to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers (Kaplan, 2001).This study investigates the ethical perception of students concerning different earnings management scenarios. A questionnaire is used to measure the ethical perception of  the respondents concerning 15 earnings management scenarios. The questionnaire is based on the questionnaire of Merchant (1994) and Fischer and Rosenzweig (1995). Sample including Fields of accounting and non- accounting (management and economics) all the senior students admission to universities public of Iran. The results of the 250 questionnaires indicate that: (1) There is a significant difference between knowledge ethical operating earnings management and accounting earnings management. (2) There is a significant difference between knowledge ethical earnings management that decrease earnings and earnings management that increase earnings. (3) There is a significant difference between knowledge ethical earnings management that affect earnings on a quarterly basis than earnings management that affect earnings on a yearly basis.

Sign in / Sign up

Export Citation Format

Share Document