Publicação
Does financial crisis impact earnings management evidence from Portuguese and UK
| Resumo: | Purpose: The main aim of this work is to analyse if 2008 financial crisis had impact on earnings management. We compare two countries with different legal forces in terms of quality of accounting to see the differences in firm’s involvement in earnings management. Finally we analyse which determinants impact management of results. Design/methodology/approach: This study focus on Portuguese and UK listed firms from a large period, 2004 till 2014. We first use the Kothari, Leone & Wasley model (2005) to calculate the discretionary accruals, a proxy of earnings management. Then we analyse the impact of six determinants on earnings management. Findings: Findings suggest that financial crisis had impact on firms’ tendency to manage financial results. Country effect is not statistically significant, even if the Portuguese and UK firms’ propensity to manage earnings is singular. Finally, firm’s size and indebt are two relevant characteristics to explain earnings management. Originality/values: This research as three major contributions. First, we not only analyse if the firms in the sample manipulate results, but we also study the impact of some characteristics on earnings management, contributing to the enrichment of the literature. Moreover, we focus on two main effects: crisis and country effect. Studies analysing both effects in simultaneous are scarce. Finally, we also believe that results are relevant to both financial investors and regulators as they may understand which factors impact manipulation of results, and can take actions that may reduce the possibility of practicing earnings management. |
|---|---|
| Autores principais: | Lisboa, Inês |
| Outros Autores: | Kacharava, Aleksandre |
| Assunto: | Earnings management Financial crisis Accruals Portugal UK |
| Ano: | 2018 |
| País: | Portugal |
| Tipo de documento: | artigo |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Instituto Politécnico de Leiria |
| Idioma: | inglês |
| Origem: | IC-online |
| _version_ | 1865920191917981696 |
|---|---|
| author | Lisboa, Inês |
| author2 | Kacharava, Aleksandre |
| author2_role | author |
| author_facet | Lisboa, Inês Lisboa, Inês Kacharava, Aleksandre Kacharava, Aleksandre |
| author_role | author |
| contributor_name_str_mv | Repositório IC-Online |
| country_str | PT |
| creators_json_str | [{\"Person.name\":\"Lisboa, Inês\",\"Person.identifier.orcid\":\"0000-0003-2802-2589\"},{\"Person.name\":\"Kacharava, Aleksandre\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Repositório IC-Online |
| datacite.creators.creator.creatorName.fl_str_mv | Lisboa, Inês Kacharava, Aleksandre |
| datacite.date.Accepted.fl_str_mv | 2018-03-16T00:00:00Z |
| datacite.date.available.fl_str_mv | 2018-04-27T14:09:15Z |
| datacite.date.embargoed.fl_str_mv | 2018-04-27T14:09:15Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Earnings management Financial crisis Accruals Portugal UK |
| datacite.titles.title.fl_str_mv | Does financial crisis impact earnings management evidence from Portuguese and UK |
| dc.contributor.none.fl_str_mv | Repositório IC-Online |
| dc.creator.none.fl_str_mv | Lisboa, Inês Kacharava, Aleksandre |
| dc.date.Accepted.fl_str_mv | 2018-03-16T00:00:00Z |
| dc.date.available.fl_str_mv | 2018-04-27T14:09:15Z |
| dc.date.embargoed.fl_str_mv | 2018-04-27T14:09:15Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10400.8/3216 |
| dc.language.none.fl_str_mv | eng |
| dc.publisher.none.fl_str_mv | European Journal of Applied Business and Management |
| dc.rights.cclincense.fl_str_mv | http://creativecommons.org/licenses/by-nc/4.0/ |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.subject.none.fl_str_mv | Earnings management Financial crisis Accruals Portugal UK |
| dc.title.fl_str_mv | Does financial crisis impact earnings management evidence from Portuguese and UK |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_6501 |
| description | Purpose: The main aim of this work is to analyse if 2008 financial crisis had impact on earnings management. We compare two countries with different legal forces in terms of quality of accounting to see the differences in firm’s involvement in earnings management. Finally we analyse which determinants impact management of results. Design/methodology/approach: This study focus on Portuguese and UK listed firms from a large period, 2004 till 2014. We first use the Kothari, Leone & Wasley model (2005) to calculate the discretionary accruals, a proxy of earnings management. Then we analyse the impact of six determinants on earnings management. Findings: Findings suggest that financial crisis had impact on firms’ tendency to manage financial results. Country effect is not statistically significant, even if the Portuguese and UK firms’ propensity to manage earnings is singular. Finally, firm’s size and indebt are two relevant characteristics to explain earnings management. Originality/values: This research as three major contributions. First, we not only analyse if the firms in the sample manipulate results, but we also study the impact of some characteristics on earnings management, contributing to the enrichment of the literature. Moreover, we focus on two main effects: crisis and country effect. Studies analysing both effects in simultaneous are scarce. Finally, we also believe that results are relevant to both financial investors and regulators as they may understand which factors impact manipulation of results, and can take actions that may reduce the possibility of practicing earnings management. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | article |
| fulltext.url.fl_str_mv | https://iconline.ipleiria.pt/bitstreams/279034b1-9a59-41f6-8368-7ecad216ce75/download |
| id | iconline_8cb1c1d2fd786aa082dedca2cd7dad3f |
| identifier.url.fl_str_mv | http://hdl.handle.net/10400.8/3216 |
| instacron_str | iconline |
| institution | Instituto Politécnico de Leiria |
| instname_str | Instituto Politécnico de Leiria |
| language | eng |
| network_acronym_str | iconline |
| network_name_str | IC-online |
| oai_identifier_str | oai:iconline.ipleiria.pt:10400.8/3216 |
| organization_str_mv | urn:organizationAcronym:iconline |
| person_str_mv | Lisboa, Inês Lisboa, Inês https://www.ciencia-id.pt/5510-48F2-54DF 5510-48F2-54DF http://orcid.org/0000-0003-2802-2589 0000-0003-2802-2589 Kacharava, Aleksandre |
| publishDate | 2018 |
| publisher.none.fl_str_mv | European Journal of Applied Business and Management |
| reponame_str | IC-online |
| repository_id_str | urn:repositoryAcronym:iconline |
| service_str_mv | urn:repositoryAcronym:iconline |
| spelling | engEuropean Journal of Applied Business and Managementpt_PTPurpose: The main aim of this work is to analyse if 2008 financial crisis had impact on earnings management. We compare two countries with different legal forces in terms of quality of accounting to see the differences in firm’s involvement in earnings management. Finally we analyse which determinants impact management of results. Design/methodology/approach: This study focus on Portuguese and UK listed firms from a large period, 2004 till 2014. We first use the Kothari, Leone & Wasley model (2005) to calculate the discretionary accruals, a proxy of earnings management. Then we analyse the impact of six determinants on earnings management. Findings: Findings suggest that financial crisis had impact on firms’ tendency to manage financial results. Country effect is not statistically significant, even if the Portuguese and UK firms’ propensity to manage earnings is singular. Finally, firm’s size and indebt are two relevant characteristics to explain earnings management. Originality/values: This research as three major contributions. First, we not only analyse if the firms in the sample manipulate results, but we also study the impact of some characteristics on earnings management, contributing to the enrichment of the literature. Moreover, we focus on two main effects: crisis and country effect. Studies analysing both effects in simultaneous are scarce. Finally, we also believe that results are relevant to both financial investors and regulators as they may understand which factors impact manipulation of results, and can take actions that may reduce the possibility of practicing earnings management.application/pdfpt_PTDoes financial crisis impact earnings management evidence from Portuguese and UKPersonalLisboa, InêsDSpacehttp://dspace.org/items/d738c31a-5c43-42ad-8643-e7349164d0e4DSpacehttp://dspace.org/items/d738c31a-5c43-42ad-8643-e7349164d0e4LisboaInêsCiência IDhttps://www.ciencia-id.pt5510-48F2-54DFORCIDhttp://orcid.org0000-0003-2802-2589Scopus Author IDhttps://www.scopus.com55582040700Kacharava, AleksandreHostingInstitutionOrganizationalRepositório IC-Onlinee-mailmailto:repositorio@ipleiria.ptrepositorio@ipleiria.ptISSNIsPartOf2183-55942018-04-27T14:09:15Z2018-03-162018-03-16T00:00:00ZHandlehttp://hdl.handle.net/10400.8/3216http://purl.org/coar/access_right/c_abf2open accessEarnings managementFinancial crisisAccrualsPortugalUK18666 bytesliteraturehttp://purl.org/coar/resource_type/c_6501journal article2018-03-16http://creativecommons.org/licenses/by-nc/4.0/http://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://iconline.ipleiria.pt/bitstreams/279034b1-9a59-41f6-8368-7ecad216ce75/downloadEuropean Journal of Applied Business and Management4180100 |
| spellingShingle | Does financial crisis impact earnings management evidence from Portuguese and UK Does financial crisis impact earnings management evidence from Portuguese and UK Lisboa, Inês Earnings management Financial crisis Accruals Portugal UK Lisboa, Inês Earnings management Financial crisis Accruals Portugal UK |
| status | NEW |
| subject.fl_str_mv | Earnings management Financial crisis Accruals Portugal UK |
| title | Does financial crisis impact earnings management evidence from Portuguese and UK |
| title_full | Does financial crisis impact earnings management evidence from Portuguese and UK |
| title_fullStr | Does financial crisis impact earnings management evidence from Portuguese and UK Does financial crisis impact earnings management evidence from Portuguese and UK |
| title_full_unstemmed | Does financial crisis impact earnings management evidence from Portuguese and UK Does financial crisis impact earnings management evidence from Portuguese and UK |
| title_short | Does financial crisis impact earnings management evidence from Portuguese and UK |
| title_sort | Does financial crisis impact earnings management evidence from Portuguese and UK |
| topic | Earnings management Financial crisis Accruals Portugal UK |
| topic_facet | Earnings management Financial crisis Accruals Portugal UK |
| url | http://hdl.handle.net/10400.8/3216 |
| visible | 1 |