Implications of Accountants Unethical Behavior and Corporate Failures

Enobong, Eshiet Udeme

doi:10.18488/journal.62.2017.44.82.94

Cited by 4 publications

(3 citation statements)

References 2 publications

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“…By practising REM activities, managers realize that they must sacrifice future cash flows to fulfil short-lived benchmarks. However, because REM involves managerial decisions related to operational strategies and investments, REM becomes more difficult to detect and avoid its impacts on cash flows (Kothari, Mizik, & Roychowdhury, 2012;Chidoko and Mashavira, 2014;Salvioni and Gennari, 2014;Razek, 2014;Eshiet, 2017;Mejdoub and Arab, 2017;Oitsile., Galebotswe and Sekwati, 2018;Chang'ach, 2018). Previous research indicates that non-fraudulent AEM is less harmful to current stockholders than REM because it does not weaken a company's cash flows (Roychowdhury, 2006;Cohen & Zarowin, 2010;Kothari et al, 2012;Ali, et.al.…”

Section: Real Earnings Managementmentioning

confidence: 99%

The Effect of Board Diversity on Real Earnings Management: Empirical Evidence From Jordan

Almashaqbeh¹,

Shaari²,

Abdul-Jabbar³

2019

IJFR

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This study considers the effect of foreign board members and age diversity on real earnings management (REM), by controlling the firm size, leverage and growth. This study employed quantitative methodology and longitudinal data for non-financial business firms, quoted on the Amman Stock Exchange from 2011 to 2015. Data were analysed using descriptive statistics and Panel Corrected Standard Errors (PCSE) regression. This study found that foreign boards member, age diversity, leverage and growth had negative and significant associations with REM. Based on the results, a firm should appoint young members to the board in addition to older members to pave the way to cross-ideology that can deter REM activities. At least one foreign director should exist within the board of directors because a foreign board member has different qualifications and experiences that may help to deter REM practices.

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Section: Real Earnings Managementmentioning

confidence: 99%

The Effect of Board Diversity on Real Earnings Management: Empirical Evidence From Jordan

Almashaqbeh¹,

Shaari²,

Abdul-Jabbar³

2019

IJFR

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“…Otros autores basan las definiciones en el actuar de las personas, un ejemplo claro es planteado por Miranda (1970) quien afirma que los fraudes financieros son delitos de gente inteligente avezada en los negocios, conocedora de las leyes y reglamentos y de las artimañas para eludir sanciones, influyente por su poder corruptor, y que tiene relaciones mundanas, políticas y con los funcionarios (p. 117). Por su parte, Enobong (2017) se enfoca en afirmar que los comportamientos antiéticos de los profesionales dejan consecuencias negativas principalmente en las organizaciones desencadenando perdidas monetarias y escándalos de índole financiero.…”

Section: Fundamentos Teóricos Del Fraude Financierounclassified

Componentes que influyen en la ejecución de fraudes financieros: percepción de los profesionales contables

et al. 2021

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Los fraudes financieros afectan la profesión contable deteriorando la confianza de la sociedad en la misma y la fe pública. Esta investigación busca identificar componentes que influyen en el desarrollo de fraudes financieros por parte de los contadores públicos y determinar qué estrategias contribuyen a su mitigación. La metodología es cualitativa con alcance descriptivo y método deductivo, se usó la investigación documental y la entrevista para obtener opiniones de profesionales relacionadas con la problemática. Los resultados permitieron identificar que los componentes más comunes son la oportunidad, la presión y la racionalidad; lo cual reafirma la teoría del triángulo del fraude. En términos de nuevos componentes se refleja la ausencia de conciencia social, el poder y la baja motivación laboral. Finalmente, se concluye que las estrategias que ayudan a mitigar los fraudes en las organizaciones se ubican en el entorno académico, profesional e investigativo. Por lo tanto, se debe fortalecer desde la academia, la ética profesional, la vigilancia activa de los organismos de control y la ejecución de proyectos frente al tema.

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“…At the end of the 20 th century, high-profile corporate accounting scandals which led to the collapse of well-established companies across the globe have also been witnessed in Nigeria [9]. The business environment in this country is also plagued with ethical problems associated with corporate scandals involving large companies [10]. In Nigeria alone, it was reported that there were 1,639 cases with losses of 18.5 million USD in 2012, 314.5 million USD with 3,380 cases in 2013, and 3,756 cases with losses of 254.5 million USD in 2014 [11].…”

Section: Introductionmentioning

confidence: 99%

Corporate Tax Avoidance, Free Cash Flow and Real Earnings Management: Evidence from Nigeria

Abubakar¹,

Mansor²,

Wan-Mohamad³

2021

ujaf

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Financial statements are supposed to convey comprehensive information about firms' financial position, performance and changes in financial positions to assist a wide range of users in making economic decisions. Audited financial statements provide independent assurance that the information presented by management about the company's financial performance and positions are true and fair. However, even with audited financial statements, there is no guarantee of zero risk of financial statements manipulation. The art of manipulating the reported earnings to achieve pre-set objectives is termed as earnings management and it can be categorized into real or accrual earnings manipulations. This study extends existing research on the real earnings management by examining the effects of corporate tax avoidance and free cash flow on real earnings management in Nigeria. The analyses involve a sample of 72 non-financial firms with 360 firm-year observations for a five-year period (2014)(2015)(2016)(2017)(2018). Data was obtained from the annual reports of these companies as well as from Thompson Reuters and Bloomberg databases. Multiple regression technique was used to test the model studied. The results show that both corporate tax avoidance and free cash flow increase management's real earnings manipulation activities. The study can benefit policymakers, shareholders, and regulators on the importance of effective internal control mechanisms to help curtail real earnings manipulations and improve the quality of reported financial statements.

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Implications of Accountants Unethical Behavior and Corporate Failures

Abstract: Article History

Cited by 4 publications

References 2 publications

The Effect of Board Diversity on Real Earnings Management: Empirical Evidence From Jordan

The Effect of Board Diversity on Real Earnings Management: Empirical Evidence From Jordan

Componentes que influyen en la ejecución de fraudes financieros: percepción de los profesionales contables

Corporate Tax Avoidance, Free Cash Flow and Real Earnings Management: Evidence from Nigeria

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