Please use this identifier to cite or link to this item: http://hdl.handle.net/10125/51942

Myopia and earnings management strategies

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Title: Myopia and earnings management strategies
Authors: Haga, Jesper
Huhtamaki, Fredrik
Sundvik, Dennis
Keywords: culture
earnings management
international financial reporting
myopia
Issue Date: 30 Aug 2017
Abstract: In this study, we investigate how country-level myopia affects managers’ willingness to engage in earnings management and choice of earnings management strategy. Using a comprehensive dataset of 47 countries for the time period from 2003 to 2015, we find that firms in short-term oriented cultures engage in more real earnings management, while firms in long-term oriented cultures rely on earnings management through accruals manipulation. Furthermore, we find a larger discontinuity around earnings benchmarks in long-term oriented cultures suggesting that utilization of AM enables benchmark beating with high precision.
URI/DOI: http://hdl.handle.net/10125/51942
Appears in Collections:11 Financial: Financial Reporting Quality / Credit Ratings / Earnings Smoothing / Earnings Comparability (FAR3)


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