Real earnings management: A review of the international literature
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Date
2022-12
Open Access Location
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
John Wiley and Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand.
Rights
(c) 2022 The Author/s
CC BY-NC-ND 4.0
CC BY-NC-ND 4.0
Abstract
We provide a systematic literature review of the determinants and consequences of real earnings management (REM) in an international context. We provide a theoretical framework for REM, the development of REM measures, and review the determinants of REM, categorising these into financial reporting, auditing, governance and controls, capital market incentives, and regulatory determinants. We then review the empirical literature on the consequences of REM. We provide some suggestions for future research on measurement issues related to REM, and on filling gaps in the empirical research investigating its determinants and consequences.
Description
Keywords
accruals earnings management, corporate governance, financial reporting regulations, real earnings management, Sarbanes Oxley Act
Citation
Habib A, Ranasinghe D, Wu JY, Biswas PK, Ahmad F. (2022). Real earnings management: A review of the international literature. Accounting and Finance. 62. 4. (pp. 4279-4344).