Earnings management in public hospitals: The case of Greek state-owned hospitals

Malkogianni, Ioanna; Cohen, Sandra

doi:10.1080/09540962.2022.2071005

Cited by 6 publications

(2 citation statements)

References 41 publications

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“…The research of Verbruggen and Christiaens (2012) offered evidence that heavily subsidized organizations used EM practices to report earnings toward zero. Further, the study of Malkogianni and Cohen (2022) showed that an increase in grants of the state-owned hospitals reduced EM (and vice versa).…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

Earnings management detection through budget execution. Insights from Greek municipalities

Malkogianni

2024

JPBAFM

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PurposeThis study examines specific budget execution items (as proxies of vulnerability and sustainability) along with political factors to identify earnings management (EM) practices in Greek municipalities.Design/methodology/approachThe study employs a sample of 1,831 financial and budget execution statements for the period 2011–2019. EM is proxied by unsigned discretionary accruals that are assessed through the performance-matched modified-Jones model and the modified-Jones model.FindingsThe findings provide evidence that the municipality’s dependence on subsidies (or its self-sufficiency) affects EM, especially during the pre-election year. Municipalities that maintain their financial autonomy engage less in EM in pre-election years. Lastly, it is proven that electoral cycles, weak opposition and other variables exert an effect on the size of EM. Sensitivity analysis confirms the results.Originality/valueThis paper contributes to the literature on EM by analyzing for the first time budget execution items (as proxies of vulnerability and sustainability) and their impact on the size of unsigned discretionary accruals.

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Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

Earnings management detection through budget execution. Insights from Greek municipalities

Malkogianni

2024

JPBAFM

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“…Additionally, experimental data demonstrates that executives and recruiting specialists in for profit companies favor hiring accounting managers with personality traits that make them more likely to engage in creative accounting and earnings management (Malkogianni & Cohen, 2022;Chouaibi & Zouari, 2022;Zhong et al, 2022). Skoda et al (2017) revealed four key variables of creative accounting: ethical considerations, disclosure quality, internal control, and ownership structure.…”

Section: Literature Reviewmentioning

confidence: 99%

Earnings management model for Visegrad Group as an immanent part of creative accounting

Kováčová

Hrosova

Ďurana

et al. 2022

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Research background: Creative accounting practices do not frequently violate the law and are not considered illegal; however, accounting managers may exploit legal ambiguities to portray the company's financial standing in accordance with management preferences. Therefore, the analysis is focused on the detection of earnings management in companies operating in the Visegrad Group, which represents one of the most commonly used techniques for revealing creative accounting. Purpose of the article: The aim of the presented study is to reveal the presence of creative accounting through the detection of earnings management in the countries of the Visegrad Group and, based on the detected results, to propose a regression model of earnings management in the Visegrad Group. Methods: To reveal the use of creative accounting in the Visegrad Group, ten selected models of earnings management were applied during the period 2016?2020 to a set of 8,134 companies. The Mann-Whitney test and multiple linear regression were used to verify the existence of earnings management. These findings served as the basis for the creation of the linear regression model of earnings management in the Visegrad Group. Findings & value-added: The presence of earnings management was best captured by the Hribar and Collins model in companies operating in the Visegrad Group in the period 2016?2020. The findings also confirmed that positive discretionary accruals acquired higher values over the entire period when compared to negative discretionary accruals, confirming that companies in the surveyed group manage their profits primarily by increasing them. Therefore, we created a regression model, that can serve as a unique basis and is capable of revealing the use of earnings management in the Visegrad Group, as until now nothing like this has been implemented in these countries. In conclusion, this study offers insights for academicians and researchers on creative accounting in the selected period. Lastly, the study contributes to the existing theory by conducting new research on the earnings management determinants of the countries studied.

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Earnings management in local government healthcare reporting: Financial distress vs. peer influence?

Kettunen,

Leppänen,

Ojala

et al. 2024

The British Accounting Review

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Earnings management in public hospitals: The case of Greek state-owned hospitals

Cited by 6 publications

References 41 publications

Earnings management detection through budget execution. Insights from Greek municipalities

Earnings management detection through budget execution. Insights from Greek municipalities

Earnings management model for Visegrad Group as an immanent part of creative accounting

Earnings management in local government healthcare reporting: Financial distress vs. peer influence?

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