Earnings management and investor protection: an international comparison

Leuz, Christian; Nanda, Dhananjay; Wysocki, Peter D.

doi:10.1016/s0304-405x(03)00121-1

Cited by 4,345 publications

(4,114 citation statements)

References 29 publications

Supporting

211

Mentioning

3,598

Contrasting

Unclassified

290

Order By: Relevance

“…368-388, Maio/Jun. 2016 www.anpad.org.br/rac Chen et al, 2010;Leuz, Nanda, & Wysocki, 2003). Nonetheless, our variable of interest (G1) captures all these factors.…”

Section: Regression Resultsmentioning

confidence: 99%

See 1 more Smart Citation

International Financial Reporting Standards and Earnings Management in Latin America

Rathke

Santana

Lourenço³

et al. 2016

Rev. adm. contemp.

View full text Add to dashboard Cite

ResumoEssa pesquisa analisa o nível de gerenciamento de resultados na América Latina após a adoção das International Financial Reporting Standards (IFRS), em comparação aos países anglo-saxões e europeu-continentais. Ela também analisa o efeito da listagem de ações nos Estados Unidos sobre a comparação do nível de gerenciamento de resultados das empresas latino-americanas com empresas estrangeiras. A literatura sobre gerenciamento de resultados considerando países menos desenvolvidos ainda está em construção, e poucos estudos focam esse tema, especialmente na América Latina, apesar de sua relevância para a economia global. A presente pesquisa preenche essa lacuna por meio do exame do nível de gerenciamento de resultados nos principais países latino-americanos que adotam as IFRS (Brasil e Chile), em comparação com os principais países anglo-saxões com tradição em IFRS (Reino Unido e Austrália), e com as principais economias da Europa Continental (França e Alemanha). Os resultados demonstram que os latino-americanos apresentam um maior nível de gerenciamento de resultados que os anglo-saxões e europeu-continentais, e esse comportamento oportunista se mantém significativo quando apenas global players com listagem de ações nos Estados Unidos são analisados. Logo, mesmo com um conjunto único de padrões contábeis de elevada qualidade (IFRS) e fortes incentivos à divulgação, as características específicas dos países produzem forte influência na forma como as IFRS são implementadas em cada país. Palavras-chave: IFRS; gerenciamento de resultados; América Latina. AbstractThis study analyzes the level of earnings management in Latin America after the adoption of the International Financial Reporting Standards (IFRS) and analyzes the role of cross-listing in the United States. The literature on earnings management in less developed countries is still under construction, and few studies focus on this issue, especially with respect to Latin America, despite its relevant role in the global economy. This paper fills this gap in the literature as it analyzes the level of IFRS earnings management regarding the first and main Latin American countries applying IFRS (Brazil and Chile), when compared to the main Anglo-Saxon countries with IFRS tradition (United Kingdom and Australia), and with the main Continental European economies (France and Germany). The results show that Latin American firms present a higher level of earnings management than Continental European and Anglo-Saxon firms, and this opportunistic behavior remains significant when only global players with cross-listing in the United States are analyzed. Thus, even with a unique set of high quality accounting standards (IFRS) and strong reporting incentives, countries' specific characteristics still play an important role in the way IFRS is implemented in each country.

show abstract

“…368-388, Maio/Jun. 2016 www.anpad.org.br/rac Chen et al, 2010;Leuz, Nanda, & Wysocki, 2003). Nonetheless, our variable of interest (G1) captures all these factors.…”

Section: Regression Resultsmentioning

confidence: 99%

“…According to Leuz, Nanda and Wysocki (2003), managers can use reporting discretion to misstate their firm's economic performance. They can overstate reported earnings in order to reach a target or report extraordinary performance in specific situations.…”

Section: Measuring Earnings Managementmentioning

confidence: 99%

International Financial Reporting Standards and Earnings Management in Latin America

Rathke

Santana

Lourenço³

et al. 2016

Rev. adm. contemp.

View full text Add to dashboard Cite

show abstract

“…Leuz et al (2003) analyse the different levels of EM through an international sample of countries and recognise that differences in accounting standards may limit the ability of management manipulation. It is therefore necessary to control for the accounting differences between countries that could potentially limit capacity and enhance the quality of financial statements.…”

Section: Accounting Systemmentioning

confidence: 99%

“…The main characteristics of each of them can be summarised as follows, from the studies of Mora et al (2004), Leuz et al (2003) and Weimer and Pape (1999): -US model: Instrumentalist conception of the company oriented to shareholders as the main stakeholders and the presence of a strong capital market as well as dispersed ownership, strong investor rights and legal controls. The tendency towards EM is lower, leading to greater FRQ.…”

Section: Accounting Systemmentioning

confidence: 99%

Consequences of financial reporting quality on corporate performance: Evidence at the international level

Martínez‐Ferrero

2014

Estudios de Economía

View full text Add to dashboard Cite

This paper examines the consequences of Financial Reporting Quality (FRQ) on Corporate Performance, using three proxies of FRQ: (i) earnings quality;(ii) conservatism; and (iii) JEL Classification: M41 Resumen Este trabajo examina las consecuencias de la Calidad de Información Financiera (FRQ) en el desempeño empresarial, con tres alternativas de FRQ: (i) earnings quality, (ii) conservadurismo, y (iii) accruals quality. Nuestro objetivo es analizar el efecto de la FRQ en el rendimiento financiero (FP) medido por el valor de mercado. A tal efecto, las hipótesis propuestas son testadas para

show abstract

“…supervisory board, audit committee, compensation policy, internal controls); organizational culture; internationalization; size; among others. Previous studies have also identified several exogenous factors that might affect the EM behavior, such as human and economic development, economic freedom (Riahi-Belkaoui, 2004); legal system, including the rules and their enforcement (Leuz, Nanda & Wysocki, 2003); cultural values (Han, Kang, Salter, & Yoo, 2010) and; audit quality (Tendeloo & Vanstraelen, 2008).…”

Section: Introductionmentioning

confidence: 99%

Earnings management and economic crises in the brazilian capital market

et al. 2014

View full text Add to dashboard Cite

The 2008 economic crisis challenged accounting, either demanding recognition and measurement criteria well adjusted to this scenario or even questioning its ability to inform appropriately entities' financial situation before the crisis occurred. So, our purpose was to verify if during economic crises listed companies in the Brazilian capital market tended to adopt earnings management (EM) practices. Our sample consisted in 3,772 firm-years observations, in 13 years -1997 to 2009. We developed regression models considering discretionary accruals as EM proxy (dependent variable), crisis as a macroeconomic factor (dummy variable of interest), ROA, market-to-book, size, leverage, foreign direct investment (FDI) and sector as control variables. Different for previous EM studies two approaches were used in data panel regression models and multiple crises were observed simultaneously. Statistics tests revealed a significant relation between economic crisis and EM practices concerning listed companies in Brazil in both approaches used. KEY WORDS | RAE-Revista de Administração de Empresas | FGV-EAESP

show abstract

Earnings management and investor protection: an international comparison

Cited by 4,345 publications

References 29 publications

International Financial Reporting Standards and Earnings Management in Latin America

International Financial Reporting Standards and Earnings Management in Latin America

Consequences of financial reporting quality on corporate performance: Evidence at the international level

Earnings management and economic crises in the brazilian capital market

Contact Info

Product

Resources

About