Earnings Management. An overview of the relative literature

Ioannis Dokas, Christos Leontidis, Nicolaos Eriotis and Konstantinos Hazakis

Bulletin of Applied Economics, 2021, vol. 8, issue 2, 25-55

Abstract: This article aims to present a critical overview of the traditional studies in earnings management, focusing on the impact on the making decision process. This overview in the literature provides numerous aspects of this topic, in line with the firms’ motivations. Earnings management procedure includes smoothing and opportunistic practices and illustrating accounting rules with a significant effect on accounting information quality. Several researchers have shifted their attention to real activities as a primary method or supplementary to accrual-based methods to obtain a complete view of the earnings management levels. Earnings management is considered an opportunistic instrument, and it can be part of the aggregate long-term business strategy. This review study provides some guidelines, to academics and professionals, in line with the models and the motivations that lead managers to engage in this procedure. This overview creates new research avenues enhancing the existing knowledge.

Keywords: Earnings management; accounting information quality; manipulation; financial reports (search for similar items in EconPapers)
JEL-codes: B26 G4 H32 M21 M41 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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