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Earnings management in developed and developing countries: A review of recent literature

Over the years, opportunistic earnings management practice generates reliable accounting earnings in a smaller amount which could not produce the fair and true firms’ financial performance. Earnings management is most probably to decrease the quality in usefulness for investment decision and repor...

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Main Authors: Noorhayati, Mansor, Elhusin Blkasem, Elhaj
Format: Article
Language:English
Published: 2019
Subjects:
HD28 Management. Industrial Management
HF5601 Accounting
Online Access:http://eprints.unisza.edu.my/6309/1/FH02-FPP-19-27471.pdf
http://eprints.unisza.edu.my/6309/
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spelling my-unisza-ir.63092022-03-16T07:03:50Z http://eprints.unisza.edu.my/6309/ Earnings management in developed and developing countries: A review of recent literature Noorhayati, Mansor Elhusin Blkasem, Elhaj HD28 Management. Industrial Management HF5601 Accounting Over the years, opportunistic earnings management practice generates reliable accounting earnings in a smaller amount which could not produce the fair and true firms’ financial performance. Earnings management is most probably to decrease the quality in usefulness for investment decision and reported earnings, therefore, decreasing the confidence of investor on the financial reports. Though, accounting earnings have been more consistent with high quality while the manager’s opportunistic behavior is changed by applying monitoring system. Therefore, regulatory bodies of the stock market and other agencies are more concerned with the earnings management, particularly, after collapsing of current numerous firms to which were reported increasing the independence of external auditors and corporate governance. Its main objective is not only to directly expand corporate performance but also to resolve agency problems by making parallel management and shareholders’ interests. Earnings management, as for as the literature concerned is very rich and resolve the problems of earnings management such as type of earnings management, corporate governance practices and also numerous elements disturbing earning management. Past studies have also been recognized the constraints on earnings management and the impact of incentives which could be divided into two groups. The first group examines corporate governance, ownership structure and audit quality as constraints while the second group studies leverage and free cash flow as incentives. This study discusses the literature of earnings management and also discusses the suitable gap from the literature of earnings management in both developed and developing countries. The contribution of this study is to highlight the complication in issues of earnings management in reporting of financial corporate and gives a way for further study on decreasing earnings management practices. 2019-01 Article PeerReviewed text en http://eprints.unisza.edu.my/6309/1/FH02-FPP-19-27471.pdf Noorhayati, Mansor and Elhusin Blkasem, Elhaj (2019) Earnings management in developed and developing countries: A review of recent literature. American Based Research Journal, 8 (1). pp. 14-26. ISSN 2304-7151
institution Universiti Sultan Zainal Abidin
building UNISZA Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Sultan Zainal Abidin
content_source UNISZA Institutional Repository
url_provider https://eprints.unisza.edu.my/
language English
topic HD28 Management. Industrial Management
HF5601 Accounting
spellingShingle HD28 Management. Industrial Management
HF5601 Accounting
Noorhayati, Mansor
Elhusin Blkasem, Elhaj
Earnings management in developed and developing countries: A review of recent literature
description Over the years, opportunistic earnings management practice generates reliable accounting earnings in a smaller amount which could not produce the fair and true firms’ financial performance. Earnings management is most probably to decrease the quality in usefulness for investment decision and reported earnings, therefore, decreasing the confidence of investor on the financial reports. Though, accounting earnings have been more consistent with high quality while the manager’s opportunistic behavior is changed by applying monitoring system. Therefore, regulatory bodies of the stock market and other agencies are more concerned with the earnings management, particularly, after collapsing of current numerous firms to which were reported increasing the independence of external auditors and corporate governance. Its main objective is not only to directly expand corporate performance but also to resolve agency problems by making parallel management and shareholders’ interests. Earnings management, as for as the literature concerned is very rich and resolve the problems of earnings management such as type of earnings management, corporate governance practices and also numerous elements disturbing earning management. Past studies have also been recognized the constraints on earnings management and the impact of incentives which could be divided into two groups. The first group examines corporate governance, ownership structure and audit quality as constraints while the second group studies leverage and free cash flow as incentives. This study discusses the literature of earnings management and also discusses the suitable gap from the literature of earnings management in both developed and developing countries. The contribution of this study is to highlight the complication in issues of earnings management in reporting of financial corporate and gives a way for further study on decreasing earnings management practices.
format Article
author Noorhayati, Mansor
Elhusin Blkasem, Elhaj
author_facet Noorhayati, Mansor
Elhusin Blkasem, Elhaj
author_sort Noorhayati, Mansor
title Earnings management in developed and developing countries: A review of recent literature
title_short Earnings management in developed and developing countries: A review of recent literature
title_full Earnings management in developed and developing countries: A review of recent literature
title_fullStr Earnings management in developed and developing countries: A review of recent literature
title_full_unstemmed Earnings management in developed and developing countries: A review of recent literature
title_sort earnings management in developed and developing countries: a review of recent literature
publishDate 2019
url http://eprints.unisza.edu.my/6309/1/FH02-FPP-19-27471.pdf
http://eprints.unisza.edu.my/6309/
_version_ 1728056349090119680
score 13.211869

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