Gestão de resultados: evidência europeia das empresas cotadas VERSUS não cotadas

Gaio, Cristina; Gonçalves, Tiago; Azevedo, Raquel

doi:10.15446/innovar.v30n76.85214

Cited by 5 publications

(3 citation statements)

References 31 publications

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“…In the view of managers, earnings play a more important informative role in financial reporting than, for example, cash flows [2,[25][26][27]. Thus, managers are tempted to manage earnings in order to report the expected short-term results even at the expense of the long-term objective of maximizing the value of the firm [26,28,29].…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Corporate Social Responsibility and Earnings Management: Moderating Impact of Economic Cycles and Financial Performance

2021

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This study analyses the relationship between earnings management and corporate social responsibility. To this end, we use a sample of 568 listed companies from the European Union between 2010 and 2018. We use discretionary accruals as the measure of earnings management, under the Modified Jones model. Corporate social responsibility is proxied by the Combined Environmental, Social and Governance Score from the ASSET4 database. We find a negative relation between earnings management and corporate social responsibility, suggesting that managers from more socially responsible companies have a more ethical behavior and, thus, financial reporting of higher quality. Additional analysis provides evidence that economic cycles and financial performance play important roles in the relation between earnings management and corporate social responsibility. During periods of crisis or of losses, the relationship is positive, suggesting that under unfavorable economic conditions, management makes opportunistic use of a sustainable company’s status to manage earnings.

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Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Corporate Social Responsibility and Earnings Management: Moderating Impact of Economic Cycles and Financial Performance

2021

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“…As for the audit performed (Aud), 67% of the entities in the sample are audited by one of the Big 4, showing that entities seek to demonstrate the quality of their financial reporting, since there is a positive correlation between the quality of financial reporting and the audit performed by these multinationals (Gaio et al 2020). The remuneration committee (RC) can be observed in the organizational structure of 71% of the entities, which is the percentage of entities that follow the recommendation issued by the CMVM.…”

Section: Descriptive Statisticsmentioning

confidence: 99%

Board Member Remuneration and Earnings Management: The Case of Portugal

Dias,

Paiva,

Carvalho

2024

Administrative Sciences

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This study draws on agency theory and evaluates the effect of the remuneration structures of board members on earnings management, proxied by discretionary accruals. To achieve the objective, this study uses a multiple regression model and a hand-collected dataset of Portuguese-listed firms from 2015 to 2019. This study suggests that fixed board remuneration is associated with lower levels of earnings management, as opposed to variable remuneration of board members, which is strongly associated with a higher level of earnings management. The findings based on this study provide useful information to investors and regulators in evaluating the effect of board compensation structure on earnings management. Additionally, this study expands the corporate governance literature by examining an under-researched mechanism to address the agency problem.

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“…All listed and unlisted companies in the Eurozone (EU28) were selected, excluding companies belonging to the financial, insurance, and public administration sectors, due to accounting and regulatory specificities, and small and medium firms, in order to increase the homogeneity of the sample and the comparability of the results across firms 3 . All companies with insufficient data availability for the calculation of the earnings quality measure in the database were excluded, as well as companies from countries with fewer than 10 firms (Gaio et al 2020;Gonçalves et al 2022). Finally, the outliers for the dependent variable of investment efficiency were removed, considering the percentiles 1 and 99 of the values.…”

Section: Data and Samplementioning

confidence: 99%

Investment Efficiency and Earnings Quality: European Evidence

Gaio

Gonçalves

Cardoso

2023

JRFM

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This study aims to analyze the relationship between earnings quality and investment efficiency in the European context, in order to understand whether higher earnings quality mitigates investment inefficiencies. To further understand the relationship between earnings quality and investment efficiency, the roles of cash and financial constraints are also analyzed. We use firm-year data based on unbalanced panel data, and control for country, year, and industry fixed effects using a sample composed of listed and unlisted European companies from 19 countries and 17 industries for the period 2010–2018. The results show a positive and significant relationship between earnings quality and investment efficiency. In both scenarios of investment inefficiency, overinvestment and underinvestment, the results suggest that a higher quality of reported earnings mitigates investment inefficiencies. The results also suggest that the negative relationship holds for cash-constrained and unconstrained firms, and that in firms that are financially unconstrained (higher levels of cash and lower levels of leverage) the combined effect with earnings quality is associated with a lower investment efficiency.

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Gestão de resultados: evidência europeia das empresas cotadas VERSUS não cotadas

Cited by 5 publications

References 31 publications

Corporate Social Responsibility and Earnings Management: Moderating Impact of Economic Cycles and Financial Performance

Corporate Social Responsibility and Earnings Management: Moderating Impact of Economic Cycles and Financial Performance

Board Member Remuneration and Earnings Management: The Case of Portugal

Investment Efficiency and Earnings Quality: European Evidence

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