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 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.

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.

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 Public Accountants’ Perceptions Of The Acceptability Of Earnings Management Practices Through The Employment Of GAAP In The Post-Sox Period

2010 ◽  
Vol 26 (1) ◽  
Author(s):  
John E. McEnroe
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Font Size ◽  
Generally Accepted Accounting Principles ◽  
Sarbanes Oxley ◽  
Accounting Scandals ◽  
Audit Opinions ◽  
Certification Requirements

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">Over fifteen years ago, Martens and McEnroe (1992) conducted a behavioral study involving earnings management through the use of Generally Accepted Accounting Principles (GAAP). Their findings indicated that auditors issued unqualified audit opinions on those financial statements and perceived little risk to litigation as a result. A decade later they conducted a similar study (Martens and McEnroe 2002) with the expectation that increased attention to earnings management by then chairman of the Securities and Exchange Commission (SEC), Arthur Levitt, would reduce auditors’ perceptions that the letter of GAAP is in itself an aegis or “safe harbor” against litigation. Although the authors found that auditors had become more conservative, they still issued unqualified opinions on financial statements in which transactions were reported in their form rather than their substance. Given the accounting scandals of Enron and WorldCom, among others, and the enactment of the Sarbanes-Oxley Act (SOX) in 2002, especially with its officers’ certification requirements, it was posited that auditors would exhibit a much more conservative approach than in either of the two previous studies. The results indicate that although auditors are more conservative than in the 1992 study, they still allow clients to engage in earnings management practices through the use of GAAP by issuing unqualified audit opinions on their financial statements. <strong style="mso-bidi-font-weight: normal;"></strong></span></span></p>

scholarly journals PERBEDAAN PERSEPSI ETIS DOSEN AKUNTANSI TERHADAP PRAKTIK EARNINGS MANAGEMENT DI KOTA PEKANBARU DALAM PERSPEKTIF GENDER

2013 ◽  
Vol 12 (2) ◽  
pp. 119
Author(s):  
Khairil Henry
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Ethical Issues ◽  
Financial Statements ◽  
Distributed Data ◽  
Ethical Orientation ◽  
Ethical Perceptions ◽  
Inaccurate Information ◽  
Accounting Faculty ◽  
Significant Difference

Earnings management is an action that may mislead users of financial statements by presenting inaccurate information, and sometimes even the cause of the illegal act. Some empirical evidence suggests that the company is actively practicing earnings management. The practice of earnings management is a form of attention to ethical issues and so need to be introduced to curriculumdevelopment, because the practice of earnings management assessed ethically ambiguous. This study tried to see if there are differences in ethical perceptions of accounting faculty to earnings management practices in terms of the type of manipulation, the manipulation direction, materiality and intention of earnings management by gender. The population is accounting lecturer at several universities in Pekanbaru taken by purposive sampling. Data collection method used by distributing questionnaires and if normally distributed data then test the hypothesis 1 (H1) was performed using parametric statistical analysis tools is by using independent sample T test (different test for two independent samples/free). The results of this study showed, although there is no significant difference between the accounting faculty of men and women in ethical perception of earnings management, but more women accounting faculty have high ethical orientation or inclination not accept the practice of earnings management compared with man accounting lecturer.

scholarly journals KONSEP PRAKTIK MANAJEMEN LABA DALAM PERSEPSI ETIS MAHASISWA (Studi Kasus Pada Universitas XYZ)

2018 ◽  
Vol 11 (1) ◽  
pp. 053
Author(s):  
Islamiah Kamil
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Management Practice ◽  
Positive Influence ◽  
Accounting Students ◽  
Ethical Perception ◽  
Ethical Perceptions ◽  
Regression Test ◽  
Management Students ◽  
Accounting Student

This study aims to determine and measure the Effect of Ethical Perceptions of Accounting Lecturers, Management Lecturers, Accounting Students and Management Students at the Faculty of Economics and Business of XYZ University Against Profit Management Practices. The research method used is causal, with analysis unit of Accounting Lecturer, Management Lecturer, Accounting Student and Management Student in Faculty of Economics and Business of XYZ University, Data analysis is done by descriptive analysis and simple linear regression test. The result of research shows from the result of regression test simple linear there is a positive influence of the Ethical Perception of Accounting Lecturers, Management Lecturer and Accounting Student of XYZ University of Economics and Business Faculty of Earnings Management Practice. Therefore the more understood Lecturer Accounting, Lecturer Management and Accounting Students to earnings management practices then the more positive ethical perceptions of earnings management practices. While on Variable Perception of Student Ethical Management There is no positive influence of Student Ethical Perception Management Faculty of Economics and Business University XYZ Against Profit Management Practice. This indicates that the less understanding of management students to the practice of earnings management, the ethical perception is also more negative to the practice of earnings management.

scholarly journals Perbedaan Earnings Management Berdasarkan pada Tahapan Life Cycle Perusahaan yang Terdaftar di Bei

2016 ◽  
Vol 18 (3) ◽  
pp. 91
Author(s):  
MI Mitha Dwi Restuti ◽  
Luluk Widyaningrum
Keyword(s):  
Life Cycle ◽  
Earnings Management ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Practice ◽  
Cycle Growth ◽  
Significant Difference

<p><em>This study aimed to find out the differences in the earnings management practice based on the company life cycle (growth , mature ,and stagnant). The samples of this study consists of 224 companies in all sectors except the financial and banking, which were listed in Indonesia Stock Exchange (IDX) during 2010-2012. This study used a Kruskal Wallis test to examine whether there were differences the earnings management practice between each level of the life cycle. The results of the study showed that there were no differences in earnings management practice at each level of the life cycle. Afterward, the earnings management practices between growth and mature level, and between mature, and stagnant level are compared. The result showed that there was a significant difference between the earnings management practice by the companies in the growth and mature level, but there was no significant difference in earnings management practice by the companies in mature</em><br /><em>and stagnant level.</em></p>

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