Mandatory IFRS adoption, investor protection and earnings management

Kouki, Ahmed

doi:10.1108/ijaim-07-2017-0091

Cited by 16 publications

(10 citation statements)

References 62 publications

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“…The different protection of investors' rights by every country distinguishes management behavior in violating investors' rights, including earnings management (Leuz, Nanda, & Wysocki, 2003). Previous studies revealed that investor protection negatively affected earnings management, meaning that strong investor protection can limit management fraud effectively (Chen, Chou, & Wei, 2019;Kouki, 2018;Lourenço et al, 2018). The previous studies also exposed that the specific characteristics could distinguish the level of earnings management, such as leverage (Burgstahler, Hail, & Leuz, 2006;Leuz et al, 2003;Marcel Martins Ardison, Lopo Martinez, & Caio Galdi, 2012).…”

Section: Introductionmentioning

confidence: 99%

Do Corporate Social Responsibility and Investor Protection Limit Earnings Management? Evidence from Indonesia and Malaysia

Muliati

Mayapada

Pattawe

2021

JAI

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Research aims: This study aims to investigate the effect of corporate social responsibility on earnings management by considering the impact of investor protection.Design/Methodology/Approach: This study’s population was plantation companies listed in Indonesia Stock Exchange and Malaysia Stock Exchange. The period of this study was from 2012 to 2017. Moreover, the hypotheses testing technique used was multiple regression analysis.Research findings: This study’s results revealed that corporate social responsibility disclosure and investor protection significantly affected earnings management.Theoretical contribution/Originality: These results support the ethics hypothesis stating that companies committed to ethics view earnings management unethical behavior. This study also verifies the relationship between legal systems and earnings management.

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Section: Introductionmentioning

confidence: 99%

Do Corporate Social Responsibility and Investor Protection Limit Earnings Management? Evidence from Indonesia and Malaysia

Muliati

Mayapada

Pattawe

2021

JAI

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“…First of all, it should be stated that due to the lack of research related to the presentation of the dimensions of protecting the interests of shareholders, this research is placed in the hands of the first researchers who attempt to thematize compliance with the material/citizen rights of shareholders at the level of the capital market. Although in the past Ghabri (2022), Wasiuzzaman et al (2022) and Kouki (2018) studied the subject as can be seen, most of the research conducted in this field is quantitative and less research has been conducted through content screening to determine the dimensions of compliance with the material/citizenship rights of shareholders. Therefore, conducting this research can help to fill the theoretical and practical research gap.…”

Section: Introductionmentioning

confidence: 99%

Towards a framework for the protection of citizen rights of capital market shareholders: evidence from Iran

Mohammadi

Gerayli

Shahri

et al. 2023

QRFM

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Purpose The citizen-shareholder approach in the capital market is considered a knowledge-enhancing and emerging concept in financial and accounting offerings. Its reliable background in management and human sciences makes it an essential basis for protecting the interests of shareholders and investors. Shareholders are considered a necessary part of the social platforms that are companies and regulatory institutions in the capital market; beyond being obligated to protect their material and intellectual rights, they are responsible for developing norms and facilitating investment values and gaining trust through mutual interactions based on respect for their interests. The purpose of this paper is to perform interactive qualitative analysis of the requirements for protecting the rights of citizens of capital market shareholders. Design/methodology/approach The methodology of the research is mixed, so that in the qualitative part, through content screening, the dimensions related to the protection of the citizen rights of the capital market shareholders were identified through a systematic review of 10 research in the period of 2017–2022. Then, the reliability of the specified dimensions was examined through Delphi analysis; in the quantitative part of the research, the criteria identified through the pairwise comparison matrix were first determined by the level of their relationships to determine based on the pattern of systemic representation of drivers and the consequences of requirements to protect the rights of citizens of capital market shareholders. Findings The research results in the qualitative part indicated the existence of 12 primary themes; during the two stages of Delphi analysis, three themes were removed, and a total of nine themes entered the quantitative phase. The results in a quantitative part indicate the creation of specialized and active committees of the board of directors as the primary driver and the reliability and timely disclosure of information in the long term as a systemic consequence. Originality/value To the best of the authors’ knowledge, this is the first research that presents the new concept of citizen shareholders to strengthen the requirements of protecting the rights of shareholders in the capital market while developing new theoretical literature.

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“…These results expand the findings presented by Kempf and Ruenzi (2006) and El Harbi and Toumia (2020), who demonstrated strong influence of past choices on current decisions (i.e., evidence of status quo bias) in the context of different institutions. Thus, they reinforced influence of behavioral bias in individuals' decision-making, especially at the institutional level, contradicting the argument that individuals make rational decisions in any situation, as suggested by mainstream literature (e.g., Jensen & Meckling, 1976;Healy, 1985;Simon, 1990;Barth, Landsman, & Lang, 2008;Kouki, 2018).…”

Section: Discussionmentioning

confidence: 84%

“…The mainstream literature on accounting choices deals with implications of accounting practicing based on individuals' incentives to manipulate earnings under the assumptions of Agency Theory. According to this perspective, managers are rational individuals that tend to maximize their own interests in every choice, considering a set of available and non-exhaustive range of information (Jensen & Meckling, 1976;Healy, 1985;Simon, 1990;Barth, Landsman, & Lang, 2008;Kouki, 2018). According to Lambert (2001), the arguments used by Agency Theory are attractive because allow researchers to explicitly conflicts of interest, incentive problems and mechanisms of control for managers' opportunistic behavior.…”

Section: Introductionmentioning

confidence: 99%

“…Most of them affirm that managers can manipulate information in order to improve their performance through earnings management and, consequently, maximize their compensation contracts (Watts & Zimmerman, 1978;Healy, 1985;Holthausen, Larcker, & Sloan, 1995). Because of it, a range of accounting standards and mechanisms of enforcement are often implemented as a system of control that aims to align the interests between managers and principals (Holthausen, Larcker, & Sloan, 1995;Watts & Zimmerman, 1986;García-Meca, & Sánchez-Ballesta, 2009;Manzano & Conesa, 2014;Kouki, 2018;Harris, Karl, & Lawrence, 2019), especially in public companies, where agency conflicts are more evident.…”

Section: Introductionmentioning

confidence: 99%

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Can the status quo bias help to explain accounting choices?

Stanzani¹

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Primeiramente, agradeço a Deus por estar comigo em todos os momentos e me proporcionar a sabedoria necessária para superar as dificuldades. Sem a Sua força e graça, eu não teria conseguido. Agradeço a minha mãe, Maria Aparecida, pelas orações e pelos conselhos. Serei eternamente grata por sempre ter me apoiado e incentivado, principalmente nos momentos mais difíceis. O seu suporte e amor foram essenciais para que eu pudesse concluir mais essa etapa. Ao meu pai, Roberto, que, mesmo não estando mais entre nós, continua guiando e iluminando os meus passos. Dedico a conclusão desta tese de doutorado ao senhor! Ao meu irmão, Arnaldo, por todo o apoio, suporte e carinho. Agradeço a toda a minha família.Agradeço, de modo muito especial, ao meu companheiro de vida, Bruno, por estar ao meu lado em todos os momentos, sempre me apoiando e incentivando, e por acreditar no meu potencial. Obrigada pela paciência, pela leveza e por cada palavra de conforto e incentivo. Sem a sua compreensão, suporte e carinho, nada disso seria possível! Sou eternamente grata a Deus por ter colocado você em meu caminho, pois eu não poderia ter escolhido pessoa melhor para compartilhar a minha vida. Agradeço, também, a minha segunda família, que ganhei por intermédio dele, e que me acolheu com muito carinho e amor. Em especial, agradeço a minha segunda mãe, Tânia, ao Lucas e a Dona Cidinha, pelas orações e palavras de incentivo quando mais precisei.Agradeço imensamente ao meu orientador, Prof. Dr. Sílvio Hiroshi Nakao, pelo suporte, aprendizado e amizade durante todos esses anos. Sou extremamente grata por ter confiado no meu potencial desde o início, por todos os ensinamentos e pelos conselhos recebidos. Com certeza, aprendi e evolui muito durante esse período. Obrigada pela oportunidade de ser orientada por um profissional tão renomado, ético e de tamanha excelência! À Prof.ª Dr.ª Mariana Simões Ferraz do Amaral Fregonesi, não poderia deixar de agradecer de modo muito especial, também. Um exemplo de profissionalismo e integridade. Agradeço pelos ensinamentos, pelo carinho, pelos conselhos e por cada palavra de incentivo nos momentos em que mais precisei. Você é um anjo na minha vida! Devo a você a minha paixão pela docência e pela pesquisa! Ao Prof. Dr. Rafael Gatsios, por generosamente ter me cedido o acesso à base de dados e pelo suporte que me concedeu durante o processo de coleta. Ao Prof. Dr. Marcelo Augusto Ambrozini, por todo o suporte recebido durante o desenvolvimento do estágio PAE, o que me fez evoluir muito, especialmente na área da docência. Admiro muito a sua didática e dedicação ao ensino. Agradeço, também, pelas indicações de bibliografias na área de Finanças Comportamentais e pelas valiosas orientações relacionadas à pesquisa.

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Mandatory IFRS adoption, investor protection and earnings management

Cited by 16 publications

References 62 publications

Do Corporate Social Responsibility and Investor Protection Limit Earnings Management? Evidence from Indonesia and Malaysia

Do Corporate Social Responsibility and Investor Protection Limit Earnings Management? Evidence from Indonesia and Malaysia

Towards a framework for the protection of citizen rights of capital market shareholders: evidence from Iran

Can the status quo bias help to explain accounting choices?

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