Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2020.1831944
Earnings management in V4 countries: the evidence of earnings smoothing and inflating
Tomas Kliestik
Jaroslav Belas
Katarina Valaskova
Elvira Nica
Pavol Durana
Sažetak
Earnings management is one of the most challenging, debated
and controversial topics in finance and financial management.
Organisational, legislative, and social norms regarding the ethics
of earnings management may vary significantly, with the views of
top management and economic environment playing significant
roles in shaping the organisational social norm. Thus, the aim of
this research is to assess if earnings management is the common
practice of enterprises within V4 countries. A novel approach of
the selection process to assess the ability of selected earnings
management detection models was applied. To highlight discrepancies and similarities among the countries, the non-parametric
alternative of analysis of variance was applied. The research confirmed that enterprises do manipulate earnings, typical is upward
manipulation. Furthermore, the research unveiled the extent of
manipulation with earnings in unique country samples and thus
emphasised the importance of both corporate and national ethical principles and managerial decisions, which affect corporate
financial reporting quality. However, it is increasingly challenging
to identify various aspects and incentives which forced enterprises
operating at the global level to smooth and inflate earnings to
improve earnings presented in the financial statements and to
misinterpret financial results.
Ključne riječi
accounting principles; discretionary accruals (D.A.); non-discretionary accruals (N.D.A.); earnings management; earnings models
Hrčak ID:
301236
URI
Datum izdavanja:
31.12.2021.
Posjeta: 1.126 *