Quo Vadis, earnings management? Analysis of manipulation determinants in Central European environment

IF 7.6 1区 经济学 Q1 ECONOMICS Oeconomia Copernicana Pub Date : 2021-09-27 DOI:10.24136/oc.2021.021
K. Valaskova, P. Adamko, Katarina Frajtova Michalikova, Jaroslav Macek
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引用次数: 42

Abstract

Research background: The paper investigates the earnings management phenomenon in the context of Central European countries, attempting to identify the factors and incentives that can influence earnings management behavior on a sample of 8,156 enterprises from Slovakia, the Czech Republic, Hungary, and Poland. Purpose of the article: The main purpose of the manuscript is to prove that there are significant differences in earnings management practices (measured by discretionary accruals) across the countries and to find the firm-specific features that influence the way enterprises manage their earnings. Methods: The modified Jones model was used to calculate the discretionary accruals, which are further analyzed across the countries. The statistically significant differences were confirmed across the countries. Thus, the impact of the economic sector, firm size, firm age, legal form, and ownership structure on earnings management behavior is studied by the Kruskal-Wallis test. The Dunn-Bonferroni post hoc tests then revealed the significant differences across the categories of the investigated earnings management determinants. To find the association between the particular earnings management practice (income-increasing or income-decreasing manipulation), correspondence analysis was used to visualize the mutual relations. Findings & value added: The results of the realized investigation revealed that the economic sector is one of the most important earnings management determinants, as its statistical significance was confirmed in each analyzed country. The correspondence analysis determined specific sectors, where income-increasing manipulation with earnings is practiced (NACE codes F, J, K, M, N), and vice versa, income-decreasing earnings management is characteristic for enterprises in sectors A, C, D, G or L. In specific economic conditions, firm size is also a relevant indicator (Hungary), or firm age and legal form and ownership structure (Poland). The recognition of crucial earnings management incentives may be helpful for authorities, policymakers, analysts and auditors when identifying various techniques and practices of earnings manipulation which could vary across the sectors and taking necessary measures to mitigate potential financial risks.
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盈余管理?中欧环境中操纵决定因素分析
研究背景:本文研究中欧国家背景下的盈余管理现象,试图以斯洛伐克、捷克、匈牙利和波兰的8156家企业为样本,找出影响盈余管理行为的因素和激励因素。文章目的:本文的主要目的是证明各国盈余管理实践(以可支配应计利润衡量)存在显著差异,并找到影响企业管理盈余方式的企业特有特征。方法:采用修正的Jones模型计算可自由支配应计利润,并对各国的可自由支配应计利润进行进一步分析。统计上的显著差异在各国之间得到证实。因此,本文通过Kruskal-Wallis检验研究了经济部门、企业规模、企业年龄、法律形式和股权结构对盈余管理行为的影响。Dunn-Bonferroni事后检验随后揭示了被调查盈余管理决定因素类别之间的显著差异。为了找到特定盈余管理实践(增加或减少收入的操纵)之间的关联,我们使用对应分析来可视化相互关系。研究结果和附加价值:已实现的调查结果显示,经济部门是盈余管理最重要的决定因素之一,因为其统计显著性在每个分析国家都得到了证实。对应分析确定了具体的行业,其中收入增加操纵与盈余(NACE代码F, J, K, M, N),反之亦然,收入减少盈余管理是A, C, D, G或l行业企业的特征。在特定的经济条件下,公司规模也是一个相关指标(匈牙利),或公司年龄,法律形式和所有权结构(波兰)。认识到关键的盈余管理激励措施可能有助于当局、政策制定者、分析师和审计师识别不同部门可能存在的各种盈余操纵技术和做法,并采取必要措施减轻潜在的财务风险。
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来源期刊
CiteScore
13.70
自引率
5.90%
发文量
26
审稿时长
24 weeks
期刊介绍: The Oeconomia Copernicana is an academic quarterly journal aimed at academicians, economic policymakers, and students studying finance, accounting, management, and economics. It publishes academic articles on contemporary issues in economics, finance, banking, accounting, and management from various research perspectives. The journal's mission is to publish advanced theoretical and empirical research that contributes to the development of these disciplines and has practical relevance. The journal encourages the use of various research methods, including falsification of conventional understanding, theory building through inductive or qualitative research, first empirical testing of theories, meta-analysis with theoretical implications, constructive replication, and a combination of qualitative, quantitative, field, laboratory, and meta-analytic approaches. While the journal prioritizes comprehensive manuscripts that include methodological-based theoretical and empirical research with implications for policymaking, it also welcomes submissions focused solely on theory or methodology.
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