An Investigation of Earnings Management Practices: Examining Generally Accepted Accounting Principles

Ahadiat, Nasrollah; Hefzi, Hassan

doi:10.2139/ssrn.2355851

Cited by 3 publications

(2 citation statements)

References 12 publications

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“…From an accounting perspective, the manager often has the power to manipulate earnings while using the accounting estimates and manipulation techniques available to him (Ahadiat and Hefzi 2013).…”

Section: Introductionmentioning

confidence: 99%

The impact of corporate governance on financial performance: a cross-sector study

Affes

Jarboui

2023

Int J Discl Gov

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Corporate governance remains the focus of current research and a concept that continues to evolve to meet the needs of business managers. Faced with the need for companies to cope with a world characterized by perpetual change and successive economic crises (Prowse in Revue d'économie financière 31:119–158, 1994), the identification of the results of the implementation of good governance mechanisms in the structure of the management of companies on financial performance remains a necessity that helps managers and researchers specialized in management sciences and financial accounting to have a better visibility on the importance of corporate governance. It should be mentioned that the economic environment and the characteristics of the sectors of activity of the companies remain a relevant criterion in the study of the relation between the governance of the companies and their financial performance. In this sense, we have tried through this research work to study the impact of the implementation of effective corporate governance on the financial performance of 160 companies in the UK between 2005 and 2018 while taking into account the specificity of the business sectors. Through our study, we used multivariate regressions based on FGLS models while dividing our sample to several clusters. As a result, we found that the implementation of good corporate governance leads to the improvement of the financial performance of companies measured by the return on equity. As a motivation, it must be said that this study can be of major importance for future studies that want to make comparisons on the sectoral and temporal level. Indeed, this study gives the possibility for future research work to make comparative studies based on comparisons for different sectors of activity in the UK before and after the Brexit and also after the COVID 19 period.

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Section: Introductionmentioning

confidence: 99%

The impact of corporate governance on financial performance: a cross-sector study

Affes

Jarboui

2023

Int J Discl Gov

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“…The extant literature does not provide a global definition of the concept of 'earnings management'. However, the common definition given by Ahadiat and Hefzi (2012) indicates that earnings management could be considered a manipulative intentional act with a specific objective in mind that could include regulatory, market and contracting incentives. However, research also indicates that earnings management could be considered acceptable if the earnings management practices are considered proper and reasonable for an entity that is well managed and if they provide value to shareholders (Parfet 2000).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Situational and Demographic Factors on Ethical Perceptions of Earnings Management Practices among Professionals

Ajward

2016

NSBM J. Mgt

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Earnings management has re-emerged as a contemporary topic particularly during and in the aftermath of the global financial crisis. In this backdrop, the two main objectives of this study were to examine whether situational factors, (i.e., nature, direction, materiality and intention of earnings management practices), and selected demographic features (i.e., gender, age, sector, employment status, tenure, educational qualifications, and professional qualifications) have an impact on the ethical perceptions of earnings management practices of professionals. For this purpose, 90 professionals from the accounting and auditing disciplines were selected and a questionnaire consisting of thirteen scenarios on earnings management administered among them. The findings of the study showed that the ethical perceptions of professionals differ according to the nature, direction, materiality and intention of the earnings manipulations involved. Further, overall, it was revealed that their ethical perceptions are not impacted by the selected demographic factors. These findings shed light on an important topic (i.e., perceptions of earnings management practices) that has not yet been examined adequately in the local context. Keywords: earnings management, demographic factors, perceptions of professionals.A R Ajward, PhD is a Senior

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Extending the Knowledge of Earnings Quality Using the AHP- an applied study

Bayou¹,

Fantazy²

2022

HSS

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This paper seeks to understand earnings quality as interpreted by UAE investment analysts, and then tests this interpretation against its actual usage in analysts' processes in determining earnings quality. Earnings quality concluded that the importance of accounting quality and earnings, based on the information relating to the source of environmental earnings quality, is more important than it seems, and exerts a significant influence on the analysis and recommendations in analysts' prospective. The purpose of this study is to demonstrate how Analytical Hierarchy Process (AHP) can be employed to determine earnings quality. Overall, the results presented from the paramorphic model under AHP are meant to be descriptive for the decision process of nine investment analysts, equities investment analysts of fund manager and work for various institutional types. The study's results offer valuable insights into how a small population of investment analysts decided the relative importance of various earnings quality dimensions. Keywords: earnings quality, investment analysts, AHP, pair-wise comparison.

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An Investigation of Earnings Management Practices: Examining Generally Accepted Accounting Principles

Cited by 3 publications

References 12 publications

The impact of corporate governance on financial performance: a cross-sector study

The impact of corporate governance on financial performance: a cross-sector study

The Impact of Situational and Demographic Factors on Ethical Perceptions of Earnings Management Practices among Professionals

Extending the Knowledge of Earnings Quality Using the AHP- an applied study

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