scholarly journals The Roles of Accounting Valuations and Earnings Management in the Survivorship of Technology Firms during the Global Financial Crisis

2019 ◽  
Author(s):  
Oliver Neoh ◽  
Matthias Nnadi
Keyword(s):  
Financial Crisis ◽  
Earnings Management ◽  
Global Financial Crisis ◽  
Technology Firms ◽  
The Global Financial Crisis

scholarly journals Family Control and Earnings Management: An Empirical Analysis of the Lebanese Banking Sector

2019 ◽  
Vol 9 (4) ◽  
pp. 124
Author(s):  
Ekramy S. Mokhtar ◽  
Ali M. Elharidy
Keyword(s):  
Financial Crisis ◽  
Earnings Management ◽  
Board Of Directors ◽  
Commercial Banks ◽  
Management Practices ◽  
Global Financial Crisis ◽  
Capital Adequacy ◽  
Board Size ◽  
Family Control ◽  
The Global Financial Crisis

This study aims to examine the relationship between board of directors’ characteristics, family control and earnings management practices in Lebanese commercial banks during 2008 to 2016. The characteristics of the board of directors are board size and role duality. Also, the study aims to identify earnings management practices during and after the global financial crisis. Earnings management was measured using discretionary accruals estimated by loan losses provision. The population for the study consists of Lebanese commercial banks registered with the Banque du Liban, which provided 182 bank/year observations during the study period. The results of the study indicate that Lebanese commercial banks with a relatively larger family control are more involved in earnings management practices. The study demonstrates that self-interest overrides common interests, leading the controlling family to maximize its own benefits at the expense of minority owners, resulting in more earnings management practices. In addition, capital adequacy and board size have significant positive influence on earnings management. Earnings management practices were not affected by role duality and bank size. Further, maintaining profitability was found to have a significant impact on earnings management practices. Finally, the results of the study indicate that Lebanese commercial banks became involved in earnings management practices after the global financial crisis compared to the period during the crisis.

Financial Crisis and Earnings Management Under U.S. GAAP and IFRS

2020 ◽  
Vol 23 (02) ◽  
pp. 2050015
Author(s):  
Thanyaluk Vichitsarawong ◽  
Li Li Eng
Keyword(s):  
Financial Crisis ◽  
Earnings Management ◽  
Financial Reporting ◽  
Global Financial Crisis ◽  
Discretionary Accruals ◽  
The United States ◽  
Production Costs ◽  
Real Earnings Management ◽  
Foreign Companies ◽  
The Global Financial Crisis

This paper examines the effects of the global financial crisis of 2008 on real and accrual-based earnings management activities of foreign companies listed in the United States as American Depositary Receipts (ADRs). The ADR firms are classified according to whether they report under U.S. Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). Accrual-based earnings management is measured using the absolute value of performance-matched discretionary accruals. We also use the positive and negative values of performance-matched discretionary accruals to examine income-increasing and income-decreasing earnings management, respectively. Real earnings management proxies are measured using performance-matched measures of the abnormal levels of cash flow from operations, production costs, and discretionary expenses. In summary, our findings indicate no difference in accrual-based earnings management for ADRs reporting under IFRS and U.S. GAAP but suggest that ADRs reporting under IFRS are more likely to manage earnings using income-decreasing discretionary accruals and aggregate real earnings management than ADRs reporting under U.S. GAAP during the financial crisis.

Earnings Management and Financial Crisis: Evidence from India

2017 ◽  
Vol 18 (2) ◽  
pp. 84-101 ◽  
Author(s):  
Manish Kumar ◽  
Madhu Vij
Keyword(s):  
Financial Crisis ◽  
Earnings Management ◽  
Global Financial Crisis ◽  
Discretionary Accruals ◽  
Financial Data ◽  
Management Behavior ◽  
Crisis Period ◽  
Before And After ◽  
The Global Financial Crisis ◽  
High Level

This paper attempts to examine the earnings management behavior of Indian firms during the global financial crisis in 2008 and compare with the period before and after. It uses the financial data of S&P CNX 500 companies for the period of 2007-2012. GICS, the best industry classification system among competing alternatives, has been used for computing discretionary accruals (DA). The study finds a high level of earnings management in firms during the pre-crisis period, a significant decrease during the crisis period, and an increase again in the post-crisis period. The study further examines the earnings management behavior isolating the firms into two categories – firms with positive DA and firms with negative DA. We found that earnings management in both these categories of firms decreased during the crisis period and increased in the post-crisis period for firms with negative DA. However, for firms with positive DA, our results are inconclusive.

Earnings management by top Chinese listed firms in response to the global financial crisis

2016 ◽  
Vol 24 (3) ◽  
pp. 226-251 ◽  
Author(s):  
Guanglu (Luke) Xu ◽  
Xudong Ji
Keyword(s):  
Financial Crisis ◽  
Earnings Management ◽  
Cash Flow ◽  
Global Financial Crisis ◽  
Ordinary Least Squares ◽  
Chinese Government ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
The Global Financial Crisis

Purpose The main aim of this study was to examine the earnings management behaviours, including both accrual-based and cash flow-based earnings management, of Chinese firms during the Global Financial Crisis (GFC). Design/methodology/approach A data set of 1,392 firm-year observations derived from a large sample of China's top listed firms (based on total assets) was constructed and investigated via univariate and ordinary least squares regression analyses. Findings Two distinct conclusions can be drawn from the results of the study. First, the top Chinese listed firms did engage in earnings management, as indicated by comparisons of the means of the absolute values of both accrual-based and cash flow-based earnings management indicators in the periods before and after 2008 when the GFC started. Second, investigation of earnings management directions revealed that in response to the GFC, the firms from construction-related industries and the airline industry manipulated earnings upwards through either accrual-based and/or cash flow-based earnings management activities. On the other hand, firms in the household durables industry engaged in earnings-reducing activities. These findings reflect the effect of the stimulus package launched by the Chinese Government in an effort to combat the GFC. In addition, the results indicate that firm characteristics such as size, leverage, profitability and growth affected the earnings management behaviours of the firms analysed in the study. Originality/value The empirically derived findings of this study contribute to the literature pertaining to the effects of the GFC on earnings management practices in China, which has remained relatively scant to date.

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