Paper Information

Journal:   JOURNAL OF EMPIRICAL RESEARCH IN ACCOUNTING   WINTER 2019 , Volume 8 , Number 2 (30) #r00443; Page(s) 345 To 362.
 
Paper: 

Earnings Management Tools in Distressed and Healthy Firms

 
 
Author(s):  ASHTAB ALI*, HAGHIGHAT HAMID, KORDESTANI GHOLAMREZA
 
* Urmia university
 
Abstract: 
Knowing about distortion of the accounting information is important for all stakeholders who make their decisions based on the annual reports of firms. So, this paper is aimed to compare earnings management in distress and healthy firms. The sample consists of 312 firms listed in Tehran Stock Exchange and out of the counter during the period from 2006 to 2015. Results show that both groups manipulate their earnings, however, "compare mean test" indicates that earnings management in distress firms is more than healthy firms and also distress firms prefer to use more real activity earnings management than accrual earnings management before financial distress occurrence. Results also show that the level of earnings management is not being increased significantly in distress firms as financial distress occurrence is more closing. Granger test results show that earnings management tools reciprocally affect each other.
 
Keyword(s): Accrual earnings management,Earnings management,Real activity earnings management
 
References: 
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