scholarly journals Accrual-Based Earnings Management: A Case Study in V4 Focusing on Mining And Quarrying Sector

2021 ◽  
pp. 70-83
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Significant Relationship ◽  
Explanatory Power ◽  
The Other ◽  
Financial Reports ◽  
Jones Model ◽  
Management Techniques ◽  
Operating Revenue

The aim of the contribution is earnings management detection by using a model with the highest explanatory power, as well as verifying hypotheses about the existence of a statistically significant relationship between earnings management and country, as well as firm size within companies operating in the mining and quarrying sector in 2019 and 2018. Data were obtained from the Amadeus database. The sample contains 348 financial reports of companies from 2019 to 2017. Research is focused on V4 companies that have the sum of total assets higher than 2,000,000 EUR, as well as the sum of operating revenue is higher than 100,000 EUR. Three recommended models were used, namely the modified Jones model, Industry model, and Kothari model. The explanatory power of these models was tested by using several criteria. Based on the results, the modified Jones model was chosen for earnings management detection. According to the results, companies in the mining and quarrying sector in V4 use earnings management techniques to manage the profit. It is not possible to clearly determine in which direction they manage their profit more often. Different values were measured in the two observed periods. Based on the results, Czech and Slovak companies used earnings management techniques to increase their profit. On the other hand, Poland and Hungarian companies used earnings management techniques to decrease it. Very large as well as large companies used earnings management techniques to decrease their profit; medium-sized companies used earnings management techniques to increase it.

scholarly journals The Impact of the Financial Stability on the Earnings Management Practices

2021 ◽  
Vol 129 ◽  
pp. 03028
Author(s):  
Anna Siekelova
Keyword(s):  
Earnings Management ◽  
Significant Relationship ◽  
Financial Stability ◽  
Management Practices ◽  
Pearson Correlation ◽  
Explanatory Power ◽  
Value Added ◽  
Academic Community ◽  
Financial Reports ◽  
The Impact

Research background: In recent years, the world economy has changed. Earnings management, as a modern phenomenon, plays an important role within the financial world under the condition of globalization. The academic community deals with the issue of the informative value of the reported financial results. The informative value of these results becomes questionable when we realize that managers have not only the motivation but also the ability to use the earnings management techniques to influence these results. Purpose of the article: The aim of the contribution is earnings management detection by using a model with the highest explanatory power, as well as verifying hypotheses about the existence of a statistically significant relationship between earnings management practices and financial stability within a sample of companies. Methods: Based on the results of the explanatory power examination, the modified Jones model is recommended for earnings management detection within the sample of V4 companies. Data were obtained from the Amadeus database. The sample contains 1,480 financial reports of companies from 2019 to 2017. Research is focused on V4 companies that have the sum of total assets higher than 2,000,000 EUR, as well as the sum of operating revenue is higher than 100,000 EUR. Also, the Pearson correlation coefficient was used to test the hypotheses about the existing statistically significant relationship between financial stability and earnings management practices. Findings & Value added: The article provides an overview of the earnings management issue within V4 countries. It examines the earnings management practices and the impact of financial stability on the level and direction of earnings management practices.

scholarly journals Earnings management initiatives and selected characteristics of an entity: a case study of the Visegrad Four

2020 ◽  
Vol 18 (3) ◽  
pp. 28-41
Author(s):  
Anna Siekelova ◽  
Katarina Valaskova ◽  
Veronika Machova
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Significant Relationship ◽  
Slovak Republic ◽  
Business Sector ◽  
Market Uncertainty ◽  
Scientific Databases ◽  
Number Of Publications ◽  
The One

This paper responds to the current issue of Earnings Management (hereafter EM) initiatives in the Visegrad Four. The aim is to identify EM practices and determine a statistically significant relationship between EM practices and firm size, country, or business sector. The paper contains a literature review, bibliometric analysis, and a description of the methods used in the practical part. Many publications containing the term “EM” in scientific databases, a keyword science map for “EM” publications, a science map of the most cited contributions dealing with EM, a science map of countries with the highest number of cited publications with the term “EM”, and a science map of sources with the highest number of publications with the term “EM” are included. The analysis covers the period from 1900 to 2019. The study is focused on detecting the presence of EM initiatives in the Visegrad Four using the modified Jones model. Results confirmed the EM initiatives in the Czech Republic, Slovak Republic, Poland, and Hungary. Using the one-way ANOVA test, a statistically significant relationship was confirmed between EM practices and firm size, country, and business sector. The study uses a sample of 250 financial statements of entities from each Visegrad Four country for the year 2018. The sample is adjusted for outliers using the IQR method. AcknowledgmentThis paper was financially supported by the Slovak Research and Development Agency – Grant No. APVV-17-0546 Variant Comprehensive Model of Earnings Management in Conditions of The Slovak Republic as an Essential Instrument of Market Uncertainty Reduction.

scholarly journals Earnings management and income tax evidence from Greece

2015 ◽  
Vol 12 (2) ◽  
pp. 511-529 ◽  
Author(s):  
Eftychia Kapoutsou ◽  
Christos Tzovas ◽  
Constantinos Chalevas
Keyword(s):  
Earnings Management ◽  
Significant Relationship ◽  
Income Tax ◽  
Management Practices ◽  
Management Accounting ◽  
Discretionary Accruals ◽  
Earning Management ◽  
Total Current ◽  
Jones Model ◽  
Deferred Tax

The aim of this study is to examine the question of earnings management and, specifically, how this relates to taxation. In order to determine whether there is a correlation between earnings management and taxation, we investigate the discretionary accruals aspect of total accruals, i.e. the portion of profits which can be affected by management accounting choices, as calculated by the Jones (1991) model and the modified Jones model (Dechow et. al, 1995). Furthermore, we examine to what degree a correlation may exist between discretionary accruals and tax income (consisting of current and deferred tax). Our empirical findings demonstrate a statistically significant relationship between the levels of discretionary accruals and of total, current and deferred tax. This suggests that tax in general may be employed as a means to facilitate earnings management. The findings of this study suggest that IFRS provisions regarding taxation provide firms with a scope to get involved in earning management practices

scholarly journals Manner modification of states

2006 ◽  
Vol 44 (1) ◽  
pp. 111-124
Author(s):  
Wilhelm Geuder
Keyword(s):  
Light Emission ◽  
Explanatory Power ◽  
Logical Form ◽  
Conceptual Structure ◽  
The Other ◽  
Event Semantics ◽  
Conceptual Approach ◽  
Recent Contribution ◽  
Major Argument

In a recent contribution to a long-standing discussion in semantics as to whether the neo-Davidsonian analysis should be extended to stative predicates or not, Maienborn (2004, 2005) proposes to distinguish two types of statives; one of them is said to have a referential argument of the Davidsonian type, the other not. As one of her arguments for making such a distinction, Maienborn observes that manner modification seems to be supported only by certain statives but to be excluded by others (thus linking the issue to the use of manner modification as one major argument in favour of event semantics, cf. Parsons 1990). In this paper, it is argued that the absence of manner modification with Maienborn's second group of statives is actually due to a failure of conceptual construal: modification of a predicate is ruled out whenever its internal conceptual structure is too poor to provide a construal for the modifier; hence, the effects observed by Maienborn reduce to the fact that eventive predicates have a more complex conceptual substructure than stative ones. Hence, the issue of manner modification with statives is shown to be orthogonal to questions of logical form and event semantics. The explanatory power of the conceptual approach is demonstrated with a case study on predicates of light emission, adapting the representation format of Barsalou's (1992) frame model.  

scholarly journals Earning Management and Risk Profile in the Banking Industry: Case Study from Indonesia

2018 ◽  
Vol 7 (3.27) ◽  
pp. 376
Author(s):  
Hery Winoto Tj ◽  
. .
Keyword(s):  
Earnings Management ◽  
Significant Relationship ◽  
Banking Industry ◽  
Stock Exchange ◽  
Risk Profile ◽  
Earning Management ◽  
Research Use ◽  
Correlation Test ◽  
Analysis Technique

This study aims to investigate the application of earnings management and risk profile in the banking industry in Indonesia, during the period 2008-2017 data on 41 banks listed on the Stock Exchange. This research use analysis technique of FMOLS regression data by first doing correlation test by using correlogram. From the research that has been conducted in the results that there is a very significant relationship between earnings management and risk profile in 41 banks in Indonesia.  

scholarly journals Earnings Management in Greece: A Case Study in Construction Sector Using Jones Model

2016 ◽  
Vol IV (Issue 4) ◽  
pp. 3-16 ◽  
Author(s):  
Ioannis Gasteratos ◽  
Michael Karamalis ◽  
Andreas Koutoupis ◽  
Ioannis Filos
Keyword(s):  
Earnings Management ◽  
Construction Sector ◽  
Jones Model

A case study of a psychotherapist’s narrative account of significant relationship breakdown and the perceived impact on his clinical work

2019 ◽  
Vol 4 (1) ◽  
Author(s):  
Karen Lubner ◽  
Maria Luca
Keyword(s):  
Clinical Practice ◽  
Significant Relationship ◽  
Lived Experiences ◽  
Romantic Relationship ◽  
Clinical Work ◽  
The Other ◽  
Perceived Impact ◽  
Relationship Breakdown ◽  
Narrative Account

This article is part of a larger scale research that explored the lived experiences of three qualified psychotherapists who each experienced significant relationship breakups whilst continuing with clinical practice. This article explores the narrative of one of these participants. This experienced psychotherapist took the decision to suspend his clinical practice after a psychologically stressful romantic relationship breakup. Due to limitations it is not possible to present all three participants in this article. A separate publication will focus on the other two. Hence the article explores how the therapist emotionally negotiated his separation and managed his therapeutic work. The study applied Labov’s (1997) structural narrative method. The analysis utilised Labov’s six narrative components, each playing a different role within a narrative. They are: abstract; orientation; complicating action; evaluation; resolution; and coda, discussed in the analysis section.

scholarly journals Audit Committee Characteristics and Earnings Management Practices

2019 ◽  
Vol 22 (1) ◽  
Author(s):  
Melinda Lydia Nelwan ◽  
Billy Ivan Tansuria
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
The Other ◽  
Manufacturing Companies ◽  
Management Models ◽  
Other Hand ◽  
Financial Expertise ◽  
Jones Model

This study revisits the effectiveness of the audit committee independence and expertise in preventing earnings management practices.  Studies in other countries that have relatively stricter regulations showed the audit committee independence was effective to prevent earnings management.  Arguably, the practice may be different in Indonesia whose regulation is considerably more lenient.  On the other hand, studies related to audit committee expertise is rarely done in Indonesia.  This study utilized two of the earnings management models namely the Modified Jones Model and the Performance-Adjusted Modified Jones Model.  This study was limited to Indonesian listed manufacturing companies from 2009 to 2011.  Consistent for both earnings management models, the results show that audit committee independence is effective to prevent earnings management.  However, the results showed that audit committee expertise did not affect earnings management practices.  Although only approximately 39 percent of the audit committee members in Indonesian listed manufacturing companies were independent, the existence of those independence members enabled the audit committee to effectively conduct its monitoring role, especially in preventing earnings management.  Nevertheless, accounting and/or financial expertise might not determine the effectiveness of the audit committee’s monitoring role.

scholarly journals COMPARISON OF EARNINGS MANAGEMENT IN EACH NON-FINANCIAL SECTOR OF BUMN LISTED ON THE IDX

2021 ◽  
Vol 2 (2) ◽  
pp. 133-152
Author(s):  
Shintya Fransiska
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Management Practices ◽  
Financial Sector ◽  
Discretionary Accruals ◽  
The Other ◽  
Average Level ◽  
Construction Sector ◽  
Jones Model ◽  
The Difference

This research was conducted to determine whether there are differences in each non-financial sector of BUMN listed on the IDX in carrying out earnings management practices. The research sample includes a saturated sampling method. The research sample consisted of 19 companies were divided into 8 sectors. The amount of data used is 225 data from 2006-2019. Earnings management will be measured using discretionary accruals with a Modified Jones model. The hypothesis was tested using the Kruskal Wallis test and followed by the Dunn test. The results show that there are differences in the level of earnings management in each non-financial sector of BUMN listed on the IDX. The difference is due to the higher level of earnings management carried out by the construction sector compare to the other sectors. Furthermore, the metal sector has the lowest average level of earnings management practices.

scholarly journals The Effect of Cash Holding, Firm Size, and Financial Leverage to Earning Management in State-Owned Enterprises (SOEs)

2020 ◽  
Vol 3 (1) ◽  
pp. 91
Author(s):  
Muhammad Elmas Fadlli ◽  
Khairunnisa M.M.
Keyword(s):  
Earnings Management ◽  
Firm Size ◽  
Stock Exchange ◽  
Case Study Research ◽  
Sampling Technique ◽  
Cash Holding ◽  
Financial Leverage ◽  
Descriptive Research ◽  
Research Type

This research was conducted to determine the simultaneous and partial influence between cash holding, firm size, and financial leverage on earnings management in SOEs Companies listed on the Indonesia Stock Exchange during 2012-2018. The method in this study used a quantitative method. This research uses descriptive research with case study research type. The sampling technique in this study used a purposive sampling technique by obtaining 12 sample companies with a period of 7 years to obtain 84 sample units. This research used a logistic regression analysis method using SPSS 25.0 software. The results of this study indicate that cash holding variables, firm size, and financial leverage simultaneously have a significant effect on earnings management. While partially, cash holding variables, firm size, and financial leverage do not affect earnings management.

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