Earnings Discontinuity as the Proxy for Earnings Management: Empirical Study from the UK, Germany and the Czech Republic

Jan Svitlík and Marcela Zárybnická Žárová

European Financial and Accounting Journal, 2018, vol. 2018, issue 4, 25-40

Abstract: The paper deals with the phenomenon of earnings discontinuity around zero level in the UK, as the common law representative, Germany, as the civil law representative, and the Czech Republic, as the civil law representative where earnings management research has not yet been thoroughly realized. We undertake both cross-sectional and time-series analysis from 2006 to 2013. According to our findings, the UK is a low-earnings-management country with slightly decreasing trend of the earnings management level. On the other hand, earnings management engagement in Germany and the Czech Republic is of a significantly higher level than in the UK. Moreover, Czech companies suggest an increasing trend of the earnings management level. We find significant difference between the common law representative and the civil law ones in terms of the earnings management level.

Keywords: Earnings Management; Earnings Discontinuity; Czech Republic; United Kingdom; Germany (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://efaj.vse.cz/doi/10.18267/j.efaj.217.html (text/html)
http://efaj.vse.cz/doi/10.18267/j.efaj.217.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlefa:v:2018:y:2018:i:4:id:217:p:25-40

Ordering information: This journal article can be ordered from
European Financial and Accounting Journal, University of Economics, Prague, nám. W. Churchilla 4, 130 67 Prague 3, Czech Republic
http://efaj.vse.cz

DOI: 10.18267/j.efaj.217

Access Statistics for this article

European Financial and Accounting Journal is currently edited by Efaj Journal

More articles in European Financial and Accounting Journal from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().