scholarly journals "Machiavellianism And Short-term Earnings Management Practices "

2013 ◽  
Vol 2 (15) ◽  
pp. 467-472
Author(s):  
Alina Beattrice Vladu
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Short Term

scholarly journals A comparison of ethical perceptions of earnings-management practices

2011 ◽  
Vol 14 (4) ◽  
pp. 422-435 ◽  
Author(s):  
Leonie Jooste
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Earnings Quality ◽  
Harvard Business Review ◽  
Business Managers ◽  
Short Term ◽  
Nelson Mandela ◽  
Sarbanes Oxley ◽  
The Usa ◽  
Accounting Practitioners

In 1990, Bruns and Merchant (1990) surveyed earnings-management practices and asked the readership of the Harvard Business Review to rate the acceptability of those practices. Prior to the Bruns and Merchant (1990) study, the morality of short-term earnings-management was of little concern to researchers and accounting practitioners. However, in the light of increased financial frauds and failures, new and increased emphasis has been placed on the importance of the concepts of earnings quality and earnings-management practices.Despite increased research focusing on business ethics since 1990, there is little evidence that the profession is educating accountants about earnings-management practices. This study compares the results of studies on earnings-management practices. Students and business managers were surveyed at the Nelson Mandela Metropolitan University (NMMU) and these results were compared to studies prior to the Sarbanes-Oxley Act 2002 in the USA. The aim of the study is to determine if there have been changes in attitudes towards earnings-management practices since the acceptance of the Sarbanes-Oxley Act.

Effects of capital structure and institutional–financial characteristics on earnings management practices

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jorge Andrés Muñoz Mendoza ◽  
Sandra María Sepúlveda Yelpo ◽  
Carmen Lissette Velosos Ramos ◽  
Carlos Leandro Delgado Fuentealba
Keyword(s):  
Earnings Management ◽  
Financial Development ◽  
Latin American ◽  
Management Practices ◽  
Short Term ◽  
Financial Policies ◽  
Financing Policy ◽  
Content Type ◽  
Financial Characteristics ◽  
Systematic Control

PurposeThe purpose of this article is to analyze the effects of financing policy and countries' institutional–financial characteristics on earnings management (EM) practices in Latin American companies.Design/methodology/approachThe GMM estimator was used according to Arellano and Bover (1995) for panel data on a sample of 983 Latin American companies between 1995 and 2017.FindingsLeverage and short-term debt have a negative and nonlinear effect on EM practices. Nonlinearity suggests that firms with high levels of leverage and short-term debt carry out positive discretionary accruals. Countries' institutional and financial development reduces EM practices. Mandatory IFRS adoption also reduces these practices and mitigates the effects of the low institutional and financial development on EM.Originality/valueThese results reveal the relevance of companies' financing policy as a means of controlling EM practices. Results also suggest that policy effectiveness decreases with leverage and short-term debt. It is suggested that policymakers design financial policies aimed to promote institutional and financial development as a means of systematic control over EM activities, which also includes IFRS.

scholarly journals Accounting ethics – an empirical investigation of managing short-term earnings

2011 ◽  
Vol 13 (1) ◽  
pp. 98-111 ◽  
Author(s):  
Leonie Jooste
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Empirical Investigation ◽  
Accounting Students ◽  
Accounting Ethics ◽  
Ethical Practice ◽  
Business Managers ◽  
Short Term ◽  
Sarbanes Oxley ◽  
Significant Difference

Short-term earnings are managed in most, if not all, companies. The management of short-term earnings is vulnerable to misinterpretation, manipulation or deliberate deception even if these misleading accounting practices are prohibited by accounting regulations. Hence, the problem with managing short-term earnings is that it becomes an ethical practice, regardless of who is or may be affected by the practice or the information that flows from it. As a result of the publicity received by Enron and WorldCom on financial failures and fraud, and the subsequent legislation, the Sarbanes-Oxley Act in 2002, students are expected to understand the morality issues of earnings-management practices. Therefore, the ethics of earnings-management practices affects the accounting educator. Accounting students and business managers were surveyed and the findings indicated that there is no significant difference between gender regarding the ethicality of twenty earning management practices. The results, however, show that there is a significant difference between the perceptions of business managers and students regarding the morality of earnings-management practices. However, no significant differences were found between genders.

scholarly journals The Ethics Of Managing Short-Term Earnings: Business Managers And Business Students Rate Earnings Management Practices Implications For Academia

2006 ◽  
Vol 3 (7) ◽  
Author(s):  
Don E. Giacomino ◽  
Jodi L. Bellovary ◽  
Michael D. Akers
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Business Students ◽  
Earnings Quality ◽  
Harvard Business Review ◽  
Business Managers ◽  
Academic Journals ◽  
Short Term ◽  
Management Actions ◽  
Accounting Practitioners

In 1990, Bruns and Merchant surveyed the readership of the Harvard Business Review (HBR).  Their survey asked HBR readers to rate the acceptability of earnings management practices. Prior to that study, researchers and accounting practitioners paid little attention to the morality of short-term earnings management.  However, in the wake of highly publicized financial frauds and failures, the profession and academic journals have emphasized the importance of the concepts of earnings quality and earnings management.The Bruns and Merchant survey provided 13 earnings management situations and asked the HBR readers to rate the acceptability of those practices.  In this study, we surveyed students and business managers to measure their perceptions about the morality of specific earnings management actions to determine if their perceptions are different from those of the HBR readers 15 years ago.  This article also compares the results of our study with several other studies that used the Bruns & Merchant instrument during the most recent 15 years.    Based on our findings, we discuss implications for academia.

Financial Management of Tires Retail and Restaurant Business in Greater Jakarta

2019 ◽  
Vol 2 (4) ◽  
pp. 267-275
Author(s):  
Sung Suk Kim ◽  
Jacob Donald Tan ◽  
Rita Juliana ◽  
John Tampil Purba
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Working Capital ◽  
Structured Interviews ◽  
Short Term ◽  
Direct Observations ◽  
Medium Enterprises ◽  
Cash Reserves ◽  
Retained Earnings ◽  
Computerized System

This study aims to explore the financial management practices ofsmall-and-medium-enterprises (SMEs) in the Greater Jakarta (Jabodetabek). We investigate into 3 SME cases by conducting the semi-structured interviews with the owner-managers and using direct observations to know the practices of financial management of SMEs. Through the research, we have found six propositions related to the practice of short-term financial management. They apply bootstraps to ensure availability of working capital. They set aside cash reserves from retained earnings and minimize loans from financial institutions. They have the computerized system to track receivables facilitating working capital needs. They keep theirinventory control efficient to manage working capital. They screen customers using transactional records and reputations to minimize the risk of bad debts.

Financial Distress, Earnings Benchmark and Earnings Management Practices

2021 ◽  
pp. 097226292110109
Author(s):  
Karan Gandhi
Keyword(s):  
Panel Data ◽  
Earnings Management ◽  
Financial Distress ◽  
Management Practices ◽  
Real Earnings Management ◽  
Public Companies ◽  
Large Panel ◽  
Distressed Firms ◽  
Contradictory Evidence ◽  
Financially Distressed

Prior research exhibits contradictory evidence on earnings management practices, both accrual and real, undertaken by the firms in state of financial distress. This study uniquely examines the issue in the presence of earnings-increasing earnings management motivation- meeting earnings benchmark of avoiding losses. For examining the issue, this study analyzes large panel data of Indian public companies for the period 2000–2016. The findings indicate prevalence of earnings-decreasing real earnings management practices, that is, decrease in overproduction and increase in spending on discretionary expenses, in financially distressed firms despite there being motivation to increase earnings to avoid losses. No evidence of accrual earnings management practices has been observed in such firms.

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