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This study examines how leverage affects real earnings management (REM) in non-financial firms listed on the Korea Composite Stock Price Index from 2010 to 2018 by employing total, short-term, and long-term debt ratios (i.e., leverage) as independent variables and four REM metrics as dependent variables. We find a significant positive relationship between leverage and REM in suspicious firms, whereas the effect of leverage is insignificant in non-suspicious firms. We also find that the positive relationship between both variables is stronger in the second half of the fiscal year, which shows the prevalence of the seasonality of REM, as managers collect high-frequency financial information during this period. These findings are consistent with those in the literature that managers increase firm leverage and REM activities to reduce their probability of being discovered, since financial statements in the interim quarters are not often audited. Our study complements the literature by introducing quarterly data to identify clearly REM activities and detect the strongest effect on the relationship between REM and leverage. Moreover, our results from the two-stage least square (2SLS) regression analysis are consistent with our previous findings.

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Accounting education focuses on delivering knowledge to students. Most student are passive, behaving as bystanders or listeners in lecturer-oriented learning. However, student-centered learning requires active and positive engagement from students to generate effective learning. Board games represent a key driving tool in inducing student participation and interest in active learning. This study investigates whether the active participation of students in class activities has positive effects on accounting education. Specifically, it tests whether active student involvement in board game activities in introductory accounting courses contributes to effective learning. There were a few key findings. Firstly, the more actively that students participate in the game, the higher their favorable changes are in terms of perception of accounting. Secondly, the higher their positive perceptions are, the higher the effects of accounting education are. These results imply that the active involvement of learners is a precondition for the effect of accounting education activities, and that positive perception is a mediator for learning effects.

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