Determinants of the Attitudes of Portuguese Accounting Students and Professionals Towards Earnings Management

Montenegro, Tânia Menezes; Rodrigues, Lúcia Lima

doi:10.1007/s10805-020-09376-z

Cited by 18 publications

(22 citation statements)

References 109 publications

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“…Thus, in the data analysis 159 valid answers were considered. As such, it is a convenience sample and not a probabilistic sample, but considered valid in previous studies (Cepêda and Monteiro, 2020;Montenegro and Rodrigues, 2020;Tassadaq and Malik, 2015).…”

Section: Methodsmentioning

confidence: 99%

“…Cepêda and Monteiro (2020) concluded that a certified accountant´s characteristics influence FI usefulness perceptions. In the study of Montenegro and Rodrigues (2020), applied in Portugal, the gender, age, education (and accounting ethics education), and experience influence of accountants' judgments. Thus, the seventh and last research question is posed.…”

Section: Rq6 What Corporate Governance Mechanisms Can Mitigate Aemp?mentioning

confidence: 99%

“…In literature, AEMP is directly linked to predictive ability, which influences the quality of financial reporting and determines the quality of the accounting system (Gutiérrez and Rodríguez, 2019). On the other hand, international financial and accounting scandals emphasized that regulations may not be sufficient and that corporate governance needs to be driven by individual ethics and moral values (Jackson, 2010), and Portugal is not excluded from these scandals, essentially with regarding banking sector (Montenegro and Rodrigues, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Empirical research on the need and mechanisms to mitigate AEMP, from a certified accounting perspective, is not found in Portugal. Many dimensions of earnings management have been analyzed in previous research (Xie et al, 2003;Reeb and Zhao, 2013;Muttakin et al, 2018), however, the studies applied in Portugal are scarce and those that exist are focused on topics other than those in this study (Montenegro and Rodrigues, 2020;Li et al, 2019;Saona et al, 2019;Pinto and Picoto, 2018;Lourenço et al, 2018;Kousenidis et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Monteiro¹,

Accounting²

2021

Int. j. adv. appl. sci.

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Accounting conservatism and Accounting-based Earnings Management Practices (AEMP) introduce bias in financial information (FI), thereby influencing stakeholder behavior in the decision-making process. This study aims to analyze, from the certified accountants’ perspective, the AEMP in Portugal. Specifically, it analyses (1) the development of the AEMP and its impact on FI reporting, (2) the main hampered on its implementation, and (3) the need for the instruments and corporate governance mechanisms to mitigate the AEMP. Besides this research analyses (4) the relationship between the certified accountant’s characteristics (gender, age, professional experience, educational qualifications, and training area. To achieve the proposed objectives, we have used a quantitative methodological approach with a survey questionnaire, conducting an empirical study based on a sample of certified accountants. Based on a sample of 159 certified accountants, the results found that the majority of respondents indicate that Portuguese companies develop AEMP and that these practices have a negative and significant impact on the quality of financial statements (FS). Moreover, most certified accountants point out that is important to adopt measures that will prevent the abuse of AEMP and the main instruments for this are the establishments of more precise and concrete accounting standards and the application of the sanctions. The results also indicate that the audit committee and efficient internal control are corporate governance mechanisms AEMP able of mitigating the effects of the AEMP. Finally, the individual characteristics of certified accountants, such as professional experience, educational qualifications, and training area, significantly influence their perception of the need to mitigate the AEMP. This study presents relevant contributions to theory and practice. First, it develops the literature that evaluates AEMP, particularly in Portugal, where studies are scarce. Second, this study is original because it considers the relationship characteristics of accounting and AEMP professionals. Third, it allows entities that operate in accounting standardization and for accountants and FI users to have a more in-depth knowledge of the AEMP’s instruments and mechanisms.

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Section: Methodsmentioning

confidence: 99%

Section: Rq6 What Corporate Governance Mechanisms Can Mitigate Aemp?mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Monteiro¹,

Accounting²

2021

Int. j. adv. appl. sci.

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show abstract

“…During the period mentioned, 389 complete observations were obtained. Given the high number of Portuguese companies, a non-probabilistic sample was chosen, which is practical in scientific studies covering a very large population [55,56].…”

Section: Figure 1 Research Modelmentioning

confidence: 99%

Internal Control System Quality and Decision-Making Success: The Role of the Financial Information Quality

Monteiro¹,

Vale²,

Cepêda³

et al. 2021

ujaf

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This study aims to develop and evaluate a Decision-Making Success contingency model to assess its dependency on Internal Control System Quality and Financial Information Quality. The authors developed a study based on a sample of 381 Portuguese managers. The structural equations model was used in the analysis of causal relationships between different constructs. Results show that Internal Control System Quality contributes directly to Decision-Making Success. Moreover, Internal Control System Quality and Financial Information Quality are determining factors for Decision-Making Success since Internal Control System Quality has a significant direct impact on Financial Information Quality (with a 64% coefficient of determination) and indirect on Decision-Making Success. The model justifies 67% of the variance of the dependent variable. This research covers a literature gap, since it identifies innovatively, two independent variables that are determinant for Decision-Making Success from the Portuguese companies' manager perspective. This study is relevant to literature development, as it develops and evaluates an original model, and to managers, in the sense that it identifies factors that contribute to Portuguese companies' success.

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The impact of information systems and non-financial information on company success

Monteiro

Vale

Leite

et al. 2022

International Journal of Accounting Information Systems

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Determinants of the Attitudes of Portuguese Accounting Students and Professionals Towards Earnings Management

Cited by 18 publications

References 109 publications

Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Practices and mechanisms to mitigate the negative effects of accountingbased earnings management: An empirical study from the professionals’ perspective

Internal Control System Quality and Decision-Making Success: The Role of the Financial Information Quality

The impact of information systems and non-financial information on company success

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