Original scientific paper
https://doi.org/10.2478/bsrj-2025-0008
Earnings Management: Still an Issue?
Ivan Galek
orcid.org/0009-0008-4651-8573
; University of Rijeka, Faculty of Economics and Business, Croatia
Josip Čičak
orcid.org/0000-0001-6090-7278
; University of Rijeka, Faculty of Economics and Business, Croatia
Abstract
Background: This paper provides an overview of the literature in earnings management (EM), focusing on the last ten years of literature dealing with companies. Objectives: The paper's primary purpose is to determine whether there is still room for research in a field with extensive literature. Methods/Approach: The literature search was conducted via Web of Science (WoS) and Scopus. Search considered articles published 2013-2022 on both databases. The search aimed to research trends in the field by focusing on the last decade. Results: The results suggest a need to focus more on examining the determinants and consequences of real earnings management (REM). Much work examines the relationship between EM and the various stakeholders. In addition, different cultural, legal, and accounting systems, geographical factors, and the distance of the institutional environment are among the factors that influence EM. Conclusions: The influence of various factors on EM has been analysed in detail in the literature, and there is still a need for research in measuring the impact of EM. Despite 20 years of intensive research, EM remains under-researched in its real-activities form.
Keywords
earnings management; earnings quality; financial statements; corporate governance
Hrčak ID:
331921
URI
Publication date:
26.1.2025.
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