How Ethical is Earnings Management? Evidence from an Emerging Economy

Nida Türegün

Accounting in Europe, 2025, vol. 22, issue 2, 201-231

Abstract: Building upon Role Theory, Agency Theory, and Experiential Learning Theory, this study explores the ethical viewpoints of earnings management (EM) across various professional roles within the accounting and finance profession in Turkey. Employing survey methodology and in-depth interviews, data were collected from educators, students, accountants, and auditors to provide insights into the ethics of EM, enhancing understanding and informing more ethically grounded practices within accounting and finance. This study identifies not only traditional opportunistic and informative forms of EM but also unveils strategic and deceptive dimensions, reflecting diverse ethical interpretations across professional roles. It posits that perceptions of EM's ethicality differ among stakeholder groups, influenced by professional roles and experience. Findings reveal that students have more lenient views due to limited experience, whereas auditors and accountants exhibit stricter stances, shaped by practical exposure. Educators influence these perceptions, highlighting the need for enhanced ethical guidance in education and practice.

Date: 2025
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DOI: 10.1080/17449480.2024.2365378

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