scholarly journals Stakeholder Perception of Earnings Management and Its Influence on the Quality of Accounting Information

2020 ◽  
Author(s):  
Elizabeth Sugiarto D. ◽  
M. F. Djeni Indrajati
Keyword(s):  
Earnings Management ◽  
Accounting Information ◽  
Stakeholder Perception ◽  
Quality Of Accounting Information

scholarly journals Political and financial background in board interlocking and earnings management in Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cristian Baú Dal Magro ◽  
Roberto Carlos Klann
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Accounting Information ◽  
Real Earnings Management ◽  
The Political ◽  
Content Type ◽  
Quality Of Accounting Information

Purpose Although board interlocking underlying forces are largely hidden, the purpose of this paper is to provide managers, auditors, analysts, regulators and other stakeholders with sociological board interlocking information considering the different backgrounds of their members. Design/methodology/approach The research sample gathered 1,606 observations from 2010 to 2017. For data analysis, the direct and indirect board interlocking linkages, considering the different backgrounds of board members, established the centrality indicators. Subsequently, the authors used these indicators according to each measured background in the regression models. Findings The results indicate that the political background of board interlocking members is positively related to real earnings management practices, while the financial background has a mitigating effect on such practices. Research limitations/implications The findings suggest that individual skills and interests conveyed across the corporate social network have shaped corporate governance, with distinct impacts on the quality of accounting information. Practical implications The authors conclude that both backgrounds could have implications on agency conflicts, increasing (policy) or reducing (financial) information asymmetry between the company and its various stakeholders, which indicates that the authors must consider sociological and not just economic aspects within corporate governance. Social implications The sociological background of individuals is necessary for the congruence of monitoring mechanisms, and consequently, the quality of accounting information. Originality/value This study examines the influence of the political and financial background of board interlocking members on real earnings management practices in Brazilian publicly traded companies in the International Financial Reporting Standards post-adoption period.

scholarly journals Influência do refazimento das demonstrações contábeis no gerenciamento de resultados das empresas listadas na BM&FBovespa

2017 ◽  
Vol 16 (1) ◽  
pp. 95-120
Author(s):  
Paulo Roberto da Cunha ◽  
Leonardo Barbi Fernandes ◽  
Cristian Bau Dal Magro
Keyword(s):  
Earnings Management ◽  
Accounting Information ◽  
Financial Statements ◽  
Discretionary Accruals ◽  
Management Quality ◽  
Quality Of Accounting Information ◽  
Survey Sample ◽  
Quantitative Nature ◽  
Negative Earnings

A qualidade da informação contábil é essencial para os stakeholders, e a prática de gerenciamento de resultado é uma medida de qualidade da informação. Atrelada a isso, a Comissão de Valores Mobiliários (CVM) solicita a republicação das demonstrações contábeis sempre que julgar necessário. Contudo, no ato da republicação das demonstrações contábeis pode haver diferentes julgamentos em relação às escolhas contábeis por parte dos gestores, ocasionando modificações no nível de gerenciamento de resultados das organizações e assimetria informacional entre o principal e o agente. Desse modo, o objetivo com este estudo foi verificar a influência do refazimento das demonstrações contábeis no gerenciamento de resultados das empresas listadas na BM&FBovespa. A análise ocorreu no período pré-refazimento, ano do refazimento e pós-refazimento. Realizou-se uma pesquisa descritiva, documental e com abordagem de cunho quantitativo. A amostra da pesquisa foi composta por 18 empresas com refazimento das demonstrações contábeis entre 1995 e 2012, e para fins de comparação foram selecionadas 18 empresas sem refazimento listadas na BM&FBovespa que continham similaridades em relação ao tamanho e ao setor de atuação. Os resultados não revelam diferenças quanto à média dos accruals discricionários entre os períodos pré-refazimento, ano do refazimento e pós-refazimento. Por outro lado, os resultados em comparação com as empresas que não foram obrigadas ao refazimento das demonstrações contábeis revelam que o refazimento influencia o gerenciamento de resultado negativo. Diante das variáveis testadas, verificou-se que o endividamento influencia o gerenciamento de resultado negativo e que o tamanho da empresa influencia o gerenciamento de resultado positivo.Palavras-chave: Refazimento das demonstrações contábeis. Gerenciamento de resultados. Qualidade da informação contábil. Abstract The quality of accounting information is essential for stakeholders and the practice of earnings management is a measure of quality of the information. Coupled to this, the Brazilian Securities Commission (CVM) requests the republication of the financial statements whenever necessary. However, upon republication of the financial statements may be different judgments about the financial choices by managers, resulting in changes in the level of earnings management organizations and informational asymmetry between the principal and the agent. Thus, the objective with this study was to investigate the influence of the restatement of financial statements in earnings management of companies listed on BM&FBovespa. The analysis took place in the pre-restatement period, the year of restatement and post-restatement. We conducted a descriptive, documentary, with quantitative nature approach. The survey sample consisted of 18 companies with restatement of financial statements from 1995 to 2012 and for comparison 18 companies without restatement listed on BM&FBovespa containing similarities in the size and sector of activity were selected. The results did not reveal differences from the average of discretionary accruals between the periods of pre-restatement, year of restatement and post-restatement. On the other hand, the results compared to companies that were not required to restate the financial statements reveal that the restatement influences the negative earnings management. Before the variables tested, it was found that the debt influences the negative earnings management and company size influences the positive earnings management.Keywords: Restatement of financial statements. Earnings management. Quality of accounting information.

scholarly journals An analysis of the effect of board characteristics and governance indices on the quality of accounting information

2014 ◽  
Vol 3 (3) ◽  
pp. 104-119
Author(s):  
Raef Gouiaa ◽  
Daniel Zéghal
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Accounting Information ◽  
Accounting Conservatism ◽  
The Other ◽  
Academic Governance ◽  
Board Characteristics ◽  
Quality Of Accounting Information

The objective of this study is to examine the effect on the quality of accounting information published by Canadian firms of board of directors’ characteristics compared to that of governance indices that measure board quality. We find that the majority of board characteristics have an important and significant effect on the levels of earnings management and accounting conservatism. On the other hand, in the case of the studied attributes of the quality of accounting information, we find that the effect of governance indices that assess the quality of boards of directors is not clearly established. Particularly, our results reveal that individual measures of the characteristics of boards of directors allow for a better detection and explanation of the quality of accounting information than do multi-factor commercial and academic governance indices.

Accounting quality and media attention around seasoned equity offerings

2018 ◽  
Vol 26 (3) ◽  
pp. 443-462 ◽  
Author(s):  
Fernando Comiran ◽  
Tatiana Fedyk ◽  
Joohyung Ha
Keyword(s):  
Earnings Management ◽  
Media Coverage ◽  
Accounting Information ◽  
Real Earnings Management ◽  
Equity Offerings ◽  
Content Type ◽  
Endogenous Factors ◽  
Media Attention ◽  
Quality Of Accounting Information

Purpose This paper aims to investigate how media coverage affects the quality of accounting information for seasoned equity offering (SEO) firms. Design/methodology/approach The sample includes SEOs completed between January 1993 and December 2014 in the USA that are available from Thomson Financial’s Securities Data Company. The FactSet database was used to measure the amount of media coverage. The paper considers two types of earnings management: accrual-based earnings management and real earnings management. Findings This study finds that the media serves as a watchdog for real earnings management but does not affect accrual manipulations. These findings hold when endogenous factors affecting firms’ earnings management choices are controlled for and also when alternative time windows for media coverage are examined. Originality/value This paper is the first to demonstrate that media attention affects the quality of accounting information during equity offerings, as it successfully reduces real earnings management.

Accounting Information Quality, Interbank Competition, and Bank Risk-Taking

2014 ◽  
Vol 90 (3) ◽  
pp. 967-985 ◽  
Author(s):  
Carlos Corona ◽  
Lin Nan ◽  
Gaoqing Zhang
Keyword(s):  
False Alarm ◽  
Risk Taking ◽  
Information Quality ◽  
Accounting Information ◽  
Capital Requirements ◽  
Quality Of Accounting Information ◽  
Accounting Information Quality ◽  
Fierce Competition ◽  
Excessive Risk Taking

ABSTRACT We study the interaction between interbank competition and accounting information quality and their effects on banks' risk-taking behavior. We identify an endogenous false-alarm cost that banks incur when forced to sell assets to meet capital requirements. We find that when the interbank competition is less intense, an improvement in the quality of accounting information encourages banks to take more risk. Keeping the banks' investments in loans constant, the provision of high-quality accounting information reduces the false-alarm cost of assets sales and improves the discriminating efficiency of the capital requirement policy. When considering the banks' endogenous investment decisions, however, this improvement in discriminating efficiency causes excessive risk-taking, because banks respond by competing more aggressively in the deposit market, and the increase in deposit costs motivates banks to take more risk. Our paper shows that improving information quality increases risk-taking with mild competition, but has no effect under fierce competition.

The Role of Green Accounting Information In Improving The Quality Of Accounting Information

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Wasan Yahia Ahmed ◽  
Suaad Adnan Noaman Al-Shammari ◽  
Ahmed Taher Kadhim Al-Anbagi
Keyword(s):  
Stock Exchange ◽  
Fundamental Problem ◽  
Accounting Information ◽  
Financial Statements ◽  
Green Accounting ◽  
Quality Of Accounting Information ◽  
The Subject ◽  
Role Of Information

The subject of green accounting is one of the modern topics in accounting science, which has received great attention by researchers and writers because of its great role in measuring and disclosing environmental activities and in line with the interests of internal and external users of accounting information.  The research stems from a fundamental problem that taking into account the costs of green accounting within the financial statements of economic units would improve the quality of accounting information provided to users. To achieve the goal of the research, a questionnaire was designed and submitted to the stakeholders of users of information and employees of a number of economic units listed on the Iraq Stock Exchange, as well as the use of different statistical methods and methods to extract results related to the role of information on green accounting in improving the quality of accounting information provided by Before economic units. The research reached several results, the most important of which was the need to take into account the costs of green accounting and manifested within the financial statements of economic units, because of its role in improving the quality of accounting information and commensurate with the interests of users, so it should work to measure those costs and disclosed to contribute to Meet the wishes and interests of users of financial statements.

scholarly journals The Impact of Accounting on Environmental Costs to Improve the Quality of Accounting Information in the Jordanian Industrial Companies

2017 ◽  
Vol 12 (6) ◽  
pp. 104
Author(s):  
Atalla M. Alqotaish ◽  
Adel M. Qatawneh
Keyword(s):  
Accounting Information ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Statistical Relationship ◽  
Industrial Companies ◽  
Study Results ◽  
Quality Of Accounting Information ◽  
Collective Performance ◽  
The Impact

The Impact of Accounting of Environmental Costs to Improve the Quality of Accounting Information in the Jordanian Industrial Companies is a study aimed to explore the importance of accounting on environmental cost in the improve of the quality of accounting information. Data were collected through from the Jordanian companies and a questionnaire distributed among the workers of offices and departments of accounting in the industrial companies listed in Jordan stock market. The study came up with the following findings: The study has shown that there exists a significant statistical relationship between the size of environmentally-related accounting disclosure of information for publicly owned companies and the adequacy of financial listing of such companies. The study has shown that there exists a significant statistical relationship between Investors decisions and the information provided by the collective performance disclosure. As per the study results, we recommend the following: The necessity of accountants' obligation towards environmentally-related auditing information provided with the financial reports, and the necessity of emphasizing on information importance as provided by the environmentally-related collective performance.

scholarly journals Information Content of Earnings Managements: Implications on Growth and Value Companies

2016 ◽  
Vol 2 (1) ◽  
pp. 47-56
Author(s):  
Windu Mulyasari ◽  
Slamet Sugiri ◽  
Heyvon Herdhayinta
Keyword(s):  
Earnings Management ◽  
Information Content ◽  
Market Price ◽  
Accounting Information ◽  
Future Earnings ◽  
Cycle Growth ◽  
Incremental Information ◽  
Growth Firms ◽  
Management Behaviors

Objective: The purpose of this study is to investigate the pattern of earnings management on growth and value companies in Indonesia. This study predicts that earnings management has information contents. Therefore, earnings management tends to degrade the quality of earnings, then affect the future profitability. This study analyzes the effect of earnings management information content to the company's future profitability. This study provides an understanding about accounting information at certain market price levels for growth and value companies. Findings: Findings of this study indicate the differences between earnings management influence on growth and value companies. The results also support the differences of relative incremental information content of earnings management on growth and value companies. The growth firms tend to do earnings management and have higher profitability compared to the value firms. The implication is that the incremental information content of earnings management on growth firms is lower than those of the value firms to predict future profitability.   Implication: The contribution of this research is to provide an in-depth review on earnings management study associated with company life cycle (growth and value), as well as  to give additional understanding about the existence of incremental information content of earnings management. Thus, firms show different earnings management behaviors and ultimately those behaviors affect the quality of profit to predict future earnings

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