Financial crisis, GDP variation and earnings management in Europe

Dimitras, Augustinos I.; Kyriakou, Maria I.; Iatridis, George Emmanuel

doi:10.1016/j.ribaf.2015.02.017

Cited by 61 publications

(64 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Country-level control variables of GDP per capita, GDP growth show a significantly negative relationship with AEM activity, suggesting that managers in wealthier frontier countries and firms from countries with greater growth engage in less AEM activity. In contrast, Dimitras et al (2015) note that AEM activity is not connected to GDP changes, find that firms operating in areas where GDP is lower than adjacent areas, engage in more EM.…”

Section: Robustness Checksmentioning

confidence: 79%

Earnings Management in Frontier Market: Do Institutional Settings Matter?

2021

View full text Add to dashboard Cite

We analyse whether differences in earnings management practices in frontier countries can be explained by institutional settings, considering their diverse corporate governance environments, legal regimes, and accounting standards. Across 22 frontier market countries from 2000–2017, we find that financial disclosure, legal environments, and the number of analysts following to be correlated with reduced levels of earnings management (EM). The impact of wealth, GDP growth, firm size, and the use of Big-4 auditors were also associated with reduced EM. Contrary to developed markets and novel to this study, higher levels of societal trust failed to show significance in its ability to constrain EM, suggesting informal institutions are less influential as control monitors. Findings herein verify that the factors that moderate EM are not universally applicable, and help highlight international differences in the management of earnings.

show abstract

Section: Robustness Checksmentioning

confidence: 79%

Earnings Management in Frontier Market: Do Institutional Settings Matter?

2021

View full text Add to dashboard Cite

show abstract

“…On the contrary, the tendency to engage in earning management is also given by the cultural factors, which remain influential in explaining differences in the magnitude of earnings management among different countries (Gray et al, 2015). Also, the macroeconomic development of the countries plays an important role, which is in detailed portrayed in the study of Dimitras et al (2015) and Reverte (2008).…”

Section: Marketing and Management Of Innovations 2020 Issuementioning

confidence: 99%

Innovations in the Company’s Earning Management: The Case for the Czech Republic and Slovakia

Klieštik

Nica

Suler

et al. 2020

MMI

View full text Add to dashboard Cite

Earning management is a collection of managerial decision that results in not reporting the true short-term, value-maximizing earnings as known to management. It is focused on the changes in financial reporting to mislead the stakeholders and achieve contractual benefits. Earnings management emphasizes the manipulation of accounting choices and operating cash flows, and it is known as a practice which chooses an accounting treatment that is either opportunistic (maximizing the utility of management only) or economically efficient. The paper deals with the possibilities of detection and quantification of trend, degree and scope of the earnings management of Slovak and Czech companies from 2015 to 2017. The paper aimed to create a systematic overview of the earnings management specificities considering the enterprises’ innovation policy as the phenomenon of earnings management understood ambiguously, contradictory and without consensus. The paper is to explain various opinions of earnings management understanding and to propose methodical instrumentation for the detection and quantification of earnings management. The validity of the focus in question is multiplied by the possibility of smooth implementation in the transition countries, countries that even after almost thirty years of transformation, still show a significant degree of difference from countries with a developed market economy. In total, 29 earnings management detection models were subjected to forensic analysis. 2,155 Slovak and 4,842 Czech enterprises represented the statistical sample after the removal of extreme values. The most effective model to reveal manipulation with earnings is the Kothari model. Using the Friedman non-parametric test, trend, degree and scope of earnings management were tested. The results of the analysis showed interesting results – countries tend to manipulate earnings upwards. Detection of earnings management practices in enterprises is of vital importance provided that the real and correct data have to be presented to stakeholders and third parties to prevent any forms of financial and credit risks. Keywords earnings management, earnings management detection models, discretionary accruals.

show abstract

“…Significant changes in studied indicators have been observed. The impact of the reduced economic activity due to the economic crisis is seen in the decrease of the GDP (Dimitras et al 2015). The main consequence of the economic crisis for countries is not only in the fall of the GDP, but also how it affects the indebtedness of the country, due to government efforts to reduce the impacts of the crisis and to relaunch economies.…”

Section: Discussionmentioning

confidence: 99%

The Ability of Selected European Countries to Face the Impending Economic Crisis Caused by COVID-19 in the Context of the Global Economic Crisis of 2008

Oravský

Tóth

Bánociová

2020

JRFM

View full text Add to dashboard Cite

This paper is devoted to the ability of selected European countries to face the potential economic crisis caused by COVID-19. Just as other pandemics in the past (e.g., SARS, Spanish influenza, etc.) have had negative economic effects on countries, the current COVID-19 pandemic is causing the beginning of another economic crisis where countries need to take measures to mitigate the economic effects. In our analysis, we focus on the impact of selected indicators on the GDP of European countries using a linear panel regression to identify significant indicators to set appropriate policies to eliminate potential negative consequences on economic growth due to the current recession. The European countries are divided into four groups according to the measures they took in the fiscal consolidation of the last economic crisis of 2008. In the analysis, we observed how the economic crisis influences GDP, country indebtedness, deficit, tax collection, interest rates, and the consumer confidence index. Our findings include that corporate income tax recorded the biggest decline among other tax collections. The interest rate grew in the group of countries most at risk from the economic crisis, while the interest rate fell in the group of countries that seemed to be safe for investors. The consumer confidence index can be considered interesting, as it fell sharply in the group of countries affected only minimally by the crisis (Switzerland, Finland).

show abstract

Financial crisis, GDP variation and earnings management in Europe

Cited by 61 publications

References 41 publications

Earnings Management in Frontier Market: Do Institutional Settings Matter?

Earnings Management in Frontier Market: Do Institutional Settings Matter?

Innovations in the Company’s Earning Management: The Case for the Czech Republic and Slovakia

The Ability of Selected European Countries to Face the Impending Economic Crisis Caused by COVID-19 in the Context of the Global Economic Crisis of 2008

Contact Info

Product

Resources

About