skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

The impact of financial statement comparability on earnings management: Evidence from frontier markets

International journal of financial studies, 2020-12, Vol.8 (4), p.1-25 [Peer Reviewed Journal]

2020 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 2227-7072 ;EISSN: 2227-7072 ;DOI: 10.3390/ijfs8040073

Full text available

Citations Cited by
  • Title:
    The impact of financial statement comparability on earnings management: Evidence from frontier markets
  • Author: Martens, Wil ; Yapa, Prem W. S ; Safari, Maryam
  • Subjects: Accounting ; accounting comparability ; accruals earnings management ; Accuracy ; Capital costs ; Comparability ; Decision making ; Earnings ; Earnings management ; Financial reporting ; Financial statements ; frontier markets ; Hypotheses ; International Financial Reporting Standards ; real earnings management
  • Is Part Of: International journal of financial studies, 2020-12, Vol.8 (4), p.1-25
  • Description: This paper examined whether financial statement comparability constrains opportunistic earningsmanagement in frontiermarket countries. Using a large sample of 19 frontiermarket countries, and an accounting comparabilitymethod thatmaps comparability across several accounting standards, the results show that enhanced financial comparability constrains accruals earnings management (AEM). Contrary to developed markets and novel to this study, a significant relationship between financial comparability and real earnings management (REM) was not found. For greater robustness, AEM and REM were also tested on both International Financial Reporting Standards (IFRS) adopting and non-adopting countries. The results suggest IFRS adoption constrains AEM, yet exhibited no impact on constraining REM. Additionally, the use of BigN auditors failed to conclusively show an ability to moderate EM.When combined, the results suggest that frontier markets engage in less REM than expected. It is also noted that the legal roots (civil vs. common law) play a significant role in constraining earningsmanagement. Common law countries exhibited lower AEMwhen comparability increased; this significance was not found in countries that were rooted in civil law. Contributions from this study show that findings from developed markets cannot be generalised to frontier markets.
  • Publisher: Basel: MDPI
  • Language: English
  • Identifier: ISSN: 2227-7072
    EISSN: 2227-7072
    DOI: 10.3390/ijfs8040073
  • Source: ROAD: Directory of Open Access Scholarly Resources
    ProQuest Central
    DOAJ Directory of Open Access Journals
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait