Financial Crisis And Earnings Management: The European Evidence

Andrei Filip and Bernard Raffournier

The International Journal of Accounting, 2014, vol. 49, issue 4, 455-478

Abstract: We examine the impact of the 2008–2009 financial crisis on the earnings management behavior of European-listed firms. We find that earnings management has significantly decreased in the crisis years. This trend is confirmed in most of the 16 countries under review. We also report a link between the level of earnings management and the economic growth rate and provide evidence suggesting that national characteristics and market forces affect the propensity of income smoothing but not accruals quality.

Keywords: Financial crisis; Earnings management; Europe; IFRS; Investor protection; Accounting quality (search for similar items in EconPapers)
JEL-codes: G01 M41 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (54)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:accoun:v:49:y:2014:i:4:p:455-478

DOI: 10.1016/j.intacc.2014.10.004

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