The impact of catholic religion on earnings management: A case of Poland

Grabiński, Konrad; Wójtowicz, Piotr

doi:10.1111/jifm.12141

Cited by 18 publications

(7 citation statements)

References 110 publications

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“…Moreover, the results of control variables also support our main findings and are significantly related to credit risk in both fixed-effect and dynamic panel estimation models. These findings are also aligned with the studies of Grabiński and Wójtowicz (2022) and Ashbaugh-Skaife et al (2006).…”

Section: Resultssupporting

confidence: 85%

“…Managements’ incentives that are part of such earnings may include bonuses or other kinds of compensation. Grabiński and Wójtowicz (2022) discover that religion has a substantial impact on the degree of accrual (real) EM in a sample of Polish enterprises. Saona et al (2020) reported that EM is decreased when the dominant shareholder’s voting rights strengthened.…”

Section: Literature Reviewmentioning

confidence: 91%

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The impact of real earnings management on corporate credit risk

Hunjra

Muhammad

Sebai

2022

JFRA

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Purpose Earnings management (EM) plays a vital role in risk management. This paper aims to investigate the impact of real earning management (REM) on credit risk. Design/methodology/approach This paper measures the credit risk by the expected default frequency of Kealhofer, McQuown and Vasicek model. This paper uses data from 2011 to 2020 of Pakistani manufacturing listed firms. This paper applies the fixed effect to analyze the results and generalized methods of moments to handle the heterogeneity issue. Findings This paper finds that the impact of REM on corporate credit risk is positive and significant and that of sales manipulation is negative and significant. This paper also reports similar outcomes of the robustness test using dynamic panel regression. Originality/value The findings of this study may help managers to modify the EM strategy to minimize corporate credit risk. Furthermore, the findings of this study are important for investors to enhance their understanding of firms’ accounting information, REM activities and cash flow patterns. It further suggests the manager should consider credit risk as an important factor while practicing REM.

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Section: Resultssupporting

confidence: 85%

Section: Literature Reviewmentioning

confidence: 91%

The impact of real earnings management on corporate credit risk

Hunjra

Muhammad

Sebai

2022

JFRA

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“…There is also evidence of low financial inclusion in other religious countries such as Iraq, Egypt, Jordan and Turkey (see, Al-Smadi, 2018; Sayed and Shusha, 2019; Dogan et al , 2021). Grabiński and Wójtowicz (2022) investigate the impact of the catholic religion on the accrual and real earnings management practice of Polish companies. They find that Catholicism encourages firms to engage in accrual earnings management, and it discourages them from engaging in real earning management.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of financial inclusion on economic growth in secular and religious countries

Ozili¹,

Lay

Syed

2023

JFRC

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Purpose Empirical research on the relationship between financial inclusion and economic growth has neglected the influence of religion or secularism. This study aims to investigate the effect of financial inclusion on economic growth in religious and secular countries. Design/methodology/approach The financial inclusion indicators are the number of automated teller machines (ATMs)per 100,000 adults and the number of bank branches per 100,000 adults. These two indicators are the accessibility dimension of financial inclusion based on physical points of service. The two-stage least square (2SLS) regression method was used to analyze the effect of financial inclusion on real gross domestic product (GDP) per capita growth and real GDP growth in religious and secular countries. Findings Bank branch contraction significantly increases economic growth in secular countries. Bank branch expansion combined with greater internet usage increases economic growth in secular countries while high ATM supply combined with greater internet usage decreases economic growth in secular countries. This study also finds that bank branch expansion, in the midst of a widening poverty gap, significantly increases economic growth in religious countries, implying that financial inclusion through bank branch expansion is effective in promoting economic growth in poor religious countries. It was also found that internet usage is a strong determinant of economic growth in secular countries. Originality/value Few studies in the literature examined the effect of financial inclusion on economic growth. But the literature has not examined how financial inclusion affects economic growth in religious and secular countries.

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“…There is also evidence of low financial inclusion in other religious countries such as Iraq, Egypt, Jordan, and turkey (see, e.g., Al-Smadi, 2018;Sayed and Shusha, 2019;Dogan et al, 2021). Grabiński and Wójtowicz (2022) investigate the impact of the catholic religion on the accrual and real earnings management practice of Polish companies. They find that Catholicism encourages firms to engage in accrual earnings management and it discourages them from engaging in real earning management.…”

Section: Document a Low Level Of Financial Inclusion Inmentioning

confidence: 99%